Annual - Financial Statements 2023

I Integrity
is the cornerstone of everything we do
M Market leadership
is what we aim across all our target sectors
A
Agility
and strategic nimbleness will help us
adapt to changing market conditions
G Good Governance
and transparency
I Innovation
to provide for the customer needs
of tomorrow
N Nation-Building
remains our priority
E Employee
engagement through a merit-based culture
4 NATIONAL BANK PAKISTAN

ANNUAL REPORT 2023 5
INSIDE
۱
THIS BOOK
۲
Welcome
Vision and Mission 03
Our Reporting Suite 08
Organisational
Overview
۵
About NBP 12
Corporate Information 14
Organogram/Governance 15
Highlights 2022 16
Our National Impact 17
Seven Decades for the Nation 18
Financial Key Events 20
Performance Financial Calendar 22
Financial Performance Overview 106

Value Creation and Distribution 112
Quarterly Performance 113
6Y Historic Performance 115
۶
Other Financial Highlights 123
Pattern of Shareholding 131
Financial
Statements
(Unconsolidated)
Independent Auditors’ Report 134
Statement of Financial Position 139
Profit and Loss Account 140
Statement of Comprehensive Income 141
Statement of Changes in Equity 142
Cashflow Statement 143
Notes to the Financial Statements 144

۳ Leadership
insight
Profile of the Board
Chairman’s Review
Insights from the CEO
Directors’ Report (English)
26
34
38
42
Directors’ Report (Urdu) 55
Profile of Shariah Board 56
Shariah Board’s Report (English) 58
۴
Shariah Board’s Report (Urdu) 65
Executive Management 66
Organisational Overview 70
Coverage Across the Nation 72
Product & Services 73
۷
Corporate
Governance
Corporate Governance 76
Statement of Compliance 86
Financial Review Report to the Members 92
Statements Statement of Internal Control 93
(Consolidated) Our Ethics & Code of Conduct 94
Risk Management Framework 96
Directors’ Report (English) 256 IT Governance & Cybersecurity 102
Directors’ Report (Urdu) 257
Auditors’ Report 258
۸
Statement of Financial Position 263
Profit and Loss Account 264
Statement of Comprehensive Income 265
Statement of Changes in Equity 266
Cashflow Statement 267
Notes to the Financial Statements 268
AGM & SUPPLEMENTARY

INFORMATION
Notice for the 75th AGM 386
Proxy Form 396

OUR REPORTING SUITE
Dear
Readers, Welcome to the 74th Annual Report of the National Bank of Pakistan (“NBP” or “the Bank”). This report comprehensively
outlines the financial and non-financial performance of the Bank for the year ending December 31, 2023.
We hope you find the report informative and enjoyable.
Our Purpose Our Integrated Approach to Value Creation

Vision The Board Risks Short and Medium Term
Enabling Delievering on Operating Context &

Setting our Strategy
Sustainable Growth our Strategy Materials Matters
Mission Executive Management Opportunities Financial and Non-Financial Targets
Strategy and Objective The Medium

As a domestic systemically important bank (‘D-SIB’), NBP holds 1. This Annual Report is released within three months from the
a substantial role in influencing socioeconomic growth within the date of approval of the Financial Statements. The comprehensive
country. Our strategy is oriented towards transforming the institution online version is also published simultaneously on the same date
into a future-ready, agile, and sustainable bank, concurrently upholding as the issue of this Annual Report at https://www.nbp.com.pk/
market leadership and fostering socioeconomic value creation for the InvestorInformation/Group-Standalone-Fin-Statements.aspx
broader society. The intricate details of our business model, including 2. The Report is distributed to shareholders in a digital format on a
the impact of various capitals and their application in the value chain. Compact Disk.
This strategic approach, coupled with effective risk management
and internal control measures, is geared towards achieving our short, 3. A limited quantity of printed copies has been produced for
medium, and long-term goals. shareholders who have made specific requests.
Organisational Purpose Material Matters

Our corporate vision aspires to position us as the foremost Material issues within our strategic framework are those that have
Nation’s bank, actively facilitating sustainable growth and inclusive a significant influence on our capacity to generate enterprise value
development. Our commitment to realizing this vision is articulated across short, medium, and long-term horizons. These encompass
through embracing the qualities represented in the acronym ‘IMAGINE’ factors within our operational landscape, including risks and
(explained on Page # 4). Serving as guiding principles for all our opportunities arising from the operating environment, considerations
endeavors, our vision and mission carefully guide every decision and from stakeholders, and an assessment of internal strengths and
action, all directed towards the overarching aim of “value creation”. weaknesses.
Targeted Readers Suggestions and Queries

This report is designed to meet the information needs of a diverse We welcome inquiries, comments, and suggestions from our readers
group of stakeholders, encompassing shareholders, employees, regarding this Annual Report. Please feel free to contact the office of
regulators, customers, governments, local communities, and others the Chief Financial Officer with any feedback.
The Chief Financial Officer National Bank of Pakistan 2nd Floor, NBP
Head Office Building, I.I. Chundrigar Road, Karachi Stakeholders may
also contact our Investor Relations Office by email at:
investor.relations@nbp.com.pk
Reporting Considerations
Financial Statements
• The Banking Companies Ordinance, 1962

• The Companies Act, 2017
Standards • The Listed Companies (Code of Corporate Governance) Regulations, 2019
and • The Public Sector Companies (Corporate Governance) Rules, 2013
Principles • International Financial Reporting Standards and Interpretations issued by the International Accounting Standards Board
• Islamic Financial Accounting Standards issued by the Institute of Chartered Accountants of Pakistan
• Other related directives issued by the SBP, SECP and PSX
• Board Audit Committee

Internal
• Robust framework of internal controls
Assurance
• Statement of Internal Control by the management
Mechanism
• Shariah Board
External
• PwC A. F. Ferguson & Co. Chartered Accountants
Assurance
• BDO Ebrahim and Co. Chartered Accountants
Mechanism

Integrated Reporting
The Bank’s integrated thinking approach to strategy formulation has empowered it to proactively address emerging challenges in both internal
and external operating landscapes. This Annual Report is organized to offer readers an integrated insight into the Bank’s organizational purpose
and how this purpose guides its approach to value creation, governance, culture, strategy and objectives setting, and the realignment of
activities with emerging external and internal influences. It also addresses material matters impacting its long-term sustainability.
Integrated Outcomes Reporting

Financial Information External Audit Board Approval
Delivering on our Strategy Operating Context & Materials Matters Setting our Strategy
Non-Financial Information Internal Validation Management Sign-Off
2023 Annual Report

Our Reporting Process and Boundary
This report comprehensively covers both financial and non-financial information on both
standalone and consolidated bases. The key contents of this report include:
- Governance & Stewardship Regulations, 2019, and the Public Sector
- Our Value Creation & Business Model Companies (Corporate Governance) Rules, 2013
- Strategic and Operational Review by the Board, - Auditors’ Review Report on the above Codes of
Chairman, and the CEO Corporate Governance
- Material Risks and Opportunities
- Audited Standalone Financial Statements of The Board Audit Committee, in accordance with
the parent entity, along with the Auditors’ Report its mandate, reviewed and endorsed these audited
- Audited Consolidated Financial Statements Financial Statements to the Board for approval.
of the Bank, its subsidiary companies, a joint Subsequently, the Board of Directors, during
venture, and associate companies (Group) its meeting held on February 22, 2024 granted
as depicted in the Consolidated Financial approval for the release of these audited Financial
Statements, along with the Auditors’ Report Statements. These financial statements are to be
Statement of Compliance with the Listed formally adopted by the Shareholders in the Annual
Companies (Code of Corporate Governance) General Meeting.
Other Information Governance and Culture

We also have a presence on digital platforms: Our robust corporate governance culture places paramount
importance on transparency, accountability, and the tenets of
https://www.facebook.com/NBPTheNationsBank good governance to safeguard the interests of stakeholders.
https://www.instagram.com/nationalbankofpakistan/ A comprehensive explanation of our governance structure is
https://www.youtube.com/channel/UCcI-feuO5V4sCcIm0xigzVg available in the Corporate Governance section on Page # 76.
https://www.linkedin.com/company/national-bank-of-pakistan/
https://twitter.com/TheNBPak
Narrative Report and Corporate Governance
• Listing Requirements of the Pakistan Stock Exchange

• The Listed Companies (Code of Corporate Governance) Regulations, 2019
• The Public Sector Companies (Corporate Governance) Rules, 2013
• Integrated Reporting Framework
• Guidelines for Presentation of Annual Reports Issued by the Institute of the Chartered Accountants of Pakistan and Institute of Cost and
Management Accountants of Pakistan
• Robust governance framework which embeds regulations and best practices Code of Conduct for employees and other governance
related policies of the Bank
• Reporting to the relevant BoD Committee and Board of Directors.
• PwC A. F. Ferguson & Co. Chartered Accountants

• BDO Ebrahim and Co. Chartered Accountants

ABOUT
The Nation’s Bank Strong Capitalisation
Established on November 9, 1949, under the National Bank
and Risk Profile
of Pakistan Ordinance, 1949, is a prominent entity listed on
Possessing a substantial net asset value of PKR 382.8 billion, the
the Pakistan Stock Exchange. Headquartered in Karachi,
National Bank of Pakistan (NBP) stands as the most capitalised bank
it is actively involved in the provision of comprehensive
in the country. In accordance with the State Bank of Pakistan’s (SBP)
commercial banking and related services both domestically
guidelines, all locally incorporated banks are required to maintain a
and internationally.
minimum paid-up capital (net of losses) of PKR 10 billion. NBP’s paid-
up capital for the year ending December 31, 2022, surpassed this
Functioning as a conduit for treasury transactions on behalf of
requirement, standing at PKR 21.27 billion (unchanged from 2022),
the Government of Pakistan, acting as an agent to the State
showcasing a comfortable margin above the SBP stipulations. As
Bank of Pakistan, the Bank oversees a network of 1508 domestic
part of its regulatory compliance, the bank adheres to the minimum
branches in Pakistan and 18 overseas branches, including the
capital ratios set forth by the Basel framework, periodically advised
Export Processing Zone branch in Karachi. With an expansive
by the SBP. Designated as a Domestic Systemically Important Bank
local and international outreach facilitated by branches,
(D-SIB) by the SBP, NBP is subject to a total capital adequacy
ATMs, subsidiaries, representative offices, agency tie-ups,
requirement of 14%, including a mandated capital conservation
and correspondent banking relationships, the Bank holds a
buffer of 2.5%. Demonstrating robust financial health, NBP boasts
significant position in the financial landscape. Boasting a total
a Common Equity Tier 1 (CET-1) ratio of 19.16% (up from 16.30%
asset base of PKR 6.7 trillion (USD 23.6 billion), constituting
in 2022) and an overall Capital Adequacy Ratio (CAR) of 25.47%
approximately 14% of the total industry assets, the Bank has
at the close of 2023 indicating full compliance with the elevated
earned the distinction of being recognized as a “Domestic
regulatory standards. The bank’s leverage ratio concluded 2023 at
Systemically Important Bank” by the State Bank of Pakistan.
3.12% (compared to 3.08% in 2022), further emphasizing its sound
financial standing. In terms of liquidity and net stable funding,
Aligned with its vision of fostering sustainable growth
NBP exceeds regulatory requirements, with ratios of 176% (2022:
and inclusive development, the Bank exhibits a robust
147%) and 259% (2022:251%), respectively, against a regulatory
diversification across key business segments, encompassing
baseline of 100% for each. Notably, NBP is rated AAA/A1+ with
retail, commercial, corporate & investment, Islamic, treasury,
a stable outlook by both VIS Credit Rating Agency and PACRA
and international operations. Its international footprint extends
Credit Rating Agency, the highest credit rating awarded to any
across South & Central Asia, the Middle East, Western Europe,
bank in Pakistan. This underscores the bank’s conservative risk
and North America. As of December 31, 2023, the domestic
appetite, robust funding foundation, secure liquidity position,
current and savings account (CASA) ratio stands at an
strong domestic franchise, and consistently stable performance.
impressive 79%.
7 Decades of Diversified Coverage

Service to the Nation The Bank has achieved a commendable level of diversification
across its primary business segments. In addition to geographical
Following the independence of Pakistan in 1947, the diversification, the institution has successfully diversified its
nation inherited a financial system marked by considerable operations across various other dimensions, including customer
fragility. A pressing need emerged for the establishment of profiles, products and services portfolios, funding structures,
a commercial bank characterized by a truly national ethos, maturity profiles, economic sectors, and sources of income.
one equipped to effectively navigate the country through
the uncertainties prevalent at that time. Since its inception,
the Bank has remained steadfast in its overarching purpose Significant Changes
and mission – that of fortifying the financial well-being of the in Organisation
nation and providing resilience during periods of uncertainty, a
commitment enduring through the historical then, the dynamic There are no significant changes from prior years with respect to
now, and the perpetual always. With a dedicated workforce Ownership and Business Model of the Bank.
exceeding 15,000 employees, the Bank diligently caters to a
substantial clientele of 9million+ customers. This commitment Group Structure
is actualized through an expansive local and international
network, comprising branches, agency arrangements, and The Bank extends its influence into both financial and non-
strategically positioned business promotion offices across financial sectors through its subsidiary companies. Notably,
Europe, America, Central Asia, Far and Middle Eastern countries. these subsidiaries encompass an Asset Management Company,
Additionally, the Bank has cultivated meaningful correspondent an Exchange Company, and a Securities Brokerage House.
banking relationships, further solidifying its global financial Despite the diversified portfolio of subsidiary operations, it is
footprint. Beyond being merely a financial institution, the noteworthy that the parent entity, i.e., the Bank itself, remains
Bank stands as a stalwart companion in the nation’s financial the predominant contributor to the Group’s assets and profits.
trajectory, consistently providing support and strength
throughout the changing times of Then, Now, and Always.

Shareholding in Ownership Structure
Associated Companies There are 2,127,513,026 issued & outstanding ordinary shares of
the Bank, of which the Federal Government through the State Bank
Besides the subsidiary companies mentioned below, the
of Pakistan holds 75.2%, Ministries/Public Sector Companies
Bank also has significant shareholding in several associated
0.4%. Other major shareholders include Foreign Companies
companies and a UK-based joint venture i.e. the United National
(5.4%), the general public (6.8%), insurance companies (4.0%),
Bank Ltd “UNBL”, which was formed in 2001 through the merger
others (7.1%) and Banks, DFIs, FIs, etc., (1.1%). (Details Page # 131)
of the UK branches National Bank of Pakistan and United Bank
Limited. NBP holds 45% shares in UNBL. The principal business
of UNBL is to provide retail banking products through its branch
network in major cities in the UK; wholesale banking treasury and
money transmission services, and finance facilities to businesses
of all sizes. Further details of associated companies are
provided in Note 10.2.2 to the Standalone Financial Statements.
NATIONAL BANK OF PAKISTAN
Subsidiaries Associates
NBP Fund Taurus National Bank

Management Ltd. Securities Ltd. Modaraba Management Company Ltd.
54% 58.3% 100%

It is one of the leading asset It is an unlisted Public Limited Company National Bank Modaraba Management
management companies of Pakistan, in operation since January, 1994. Its Company Limited manages the First
managing over 200 Billion of investors’ activities encompass the following areas: National Bank Modaraba which was
savings in various investment solutions. • Equity brokerage established in December 2003. The
• Financial and economic research company is under winding-up.
The Company has been awarded
• In terms of market share, Taurus is
the highest achievable investment
management rating of AM1 ranked high among the top tier equity
brokers in Pakistan.
NBP Exchange CJSC Subsidiary Bank of

Company Ltd. NBP in Kazakhstan.
100% 100%
NBP Exchange is the first bank-owned The company was formed in the year
company to start a currency exchange 2001. It was providing commercial
business in the country. The Company banking services in Kazakhstan.
is operating with a network of 20 The Bank has decided to close this
branches to deal in foreign currency subsidiary company which is in the
exchange. process of closure.

CORPORATE
INFORMATION
Name of the Company Accounting Year End
National Bank of Pakistan December 31
Legal Form Auditors of 2023

A listed Public Limited Company A.F. Ferguson & Co. Chartered Accountants
established in Pakistan on November BDO Ebrahim & Co. Chartered Accountants
9, 1949 under the National Bank of
Pakistan Ordinance, 1949
Registrar and Share

Board of Directors
Registration Office:
Mr. Ashraf Mahmood Wathra, Chairman
Mr. Rehmat Ali Hasnie, President/CEO CDC Share Registrar Services Limited,
Mr. Ali Syed, Director CDC House, 99-B, Block-B, S.M.C.H.S.,
Mr. Nasim Ahmad, Director Main Shahrah-e-Faisal, Karachi, Pakistan
Mr. Farid Malik, Director
Mr. Ahsan Ali Chughtai, Director
Mr. Amjad Mahmood, Director
Registered and Head office:
Board Committees NBP Building I.I. Chundrigar Road,
Karachi, Pakistan
Board Audit Committee
Board Risk & Compliance Committee
Board HR & Remuneration Committee
Board Technology & Digitalisation
Committee Phone: 92-21-99220100 (30 lines),
Board Inclusive Development Committee Phone: 92-21-99062000 (60 lines),
NY Governance Council Phone: Banking: 111-627-627
(Sub-Committee of BRCC)
UAN: 111-111- 500

Company Secretary
Mr. Syed Muhammad Ali Zamin
Website:
Legal Advisor www.nbp.com.pk
STOCK EXCHANGE LISTING
Khalid Anwar & Co.Advocates &
Pakistan Stock Exchange
Legal Advisors
Symbol - “NBP”

ORGANOGRAM / GOVERNANCE
NBP governance structures are designed to ensure an appropriate balance of authority and decision-making, driving accountability, transparency,
and integrity across the organisation. The Bank’s governance structure is set out below:
EXTERNAL AUDITORS SHAREHOLDERS REGULATORS
BOARD OF DIRECTORS
The Board of Directors serves as the custodian of the Bank’s corporate governance and is empowered to delegate authority and responsibilities pertaining to Secretary
specific functions to any committee or committees as it thinks fit. The Board determines the strategic objectives and policies of the Bank to deliver long-term Board of
ANNUAL REPORT 2023

value by providing overall strategic direction within a framework of reward incentives and controls. Directors
BOARD COMMITTEES
Board Audit Board Risk & Board HR & Board Inclusive Board Technology & NBP – NY Governance Council
Committee Compliance Committee Remuneration Committee Development Committee Digitalisation Committee (Sub-Committee of BRCC)
Determine and review the Review and recommend

General oversight of Review and assess all the Addressing concerns and
Assess all risks faced by the human resources and Development finance strategy
financial reporting, internal Technological advancements ensuring compliance with all
bank and recommend remuneration policies and and relevant policies for the
controls and functions & digital initiatives and applicable laws and
Appropriate risk management recommend policies for bank in the sectors related to
relating to internal and recommend related policies regulatory instructions of the
policies to the board. approval by the board on low-cost housing, sme,
external audit. to the board. respective host jurisdictions.
Matters related to the HR. agriculture, etc.
PRESIDENT / CEO
Management
Compliance
Executive Enterprise Risk Asset and Liability Management Credit Committee for Expense Approval HR Committee for
Committee
Committee Committee Committee Committee Overseas Committee Management
of Management
Operations Credit
THE LEADERSHIP TEAM
BUSINESS, CONTROL & SUPPORT GROUPS

Logistics,
Corporate & Treasury & Aitemaad Special
Retail Inclusive Digital Internal Audit Risk Financial Information HR Marketing Legal
Investment Capital Islamic Assets Compliance Operations
Banking Development Banking & Inspection Management Control Technology Management and Division
Banking Markets Banking Management
Communication
Business Control Support
15
HIGHLIGHTS 2023
Profitability Financial Position
Total Income Pre-Prov. Profit Total Assets Investments

PKR 209.3 Bn PKR 115.7 Bn PKR 6.6 Tn PKR 4.4 Tn
36.4% 53.6% 26.9% 26.6%
Profit Before Tax Profit After Tax Advances Deposits

PKR 101.2 Bn PKR 51.8 Bn PKR 1.6 Tn PKR 3.7 Tn
61.4% 70.5% 13.4% 37.8%
Financial Soundness
Total CET-1 Net Stable Liquidity Leverage NPL

Capital Funding Coverage Coverage
25.47% 19.16% 259% 176% 3.12% 92.19%
Credit Rating
A1+ Short-Term A-1+ Short-Term

PACRA AAA Long-Term VIS AAA Long-Term

OUR NATIONAL IMPACT
Corporate Unparalleled Nationwide Coverage
Loans
9Mn+ 1,508
Customers Domestic Branches
1,400+ 750+
The Largest Rural
ATMs with 98% Up-time Branch Network
Economic Value Generated
>95% PKR 1,071 Bn
97%
>95% Branches
PKR 750 Bn
Remained Open
18% to Depositors, Suppliers, the Governments,
Colleagues, Shareholders and the Community
Agriculture Loan Community

CSR Initiatives
Investment
PKR 90 Bn
23.1 45.1
Taxes to the Government
PKR
PKR 88 Mn
Community Investment
Bn
Islamic Banking Assets
PKR 49.4 Bn PKR 140.2 Bn
53% 28.2%

7 DECADES
FOR THE NATION
1950 1960 1970 1980 1990 2000
Assets 120 Assets 1,253 Assets 5,374 Assets 32,380 Assets 135,074 Assets 371,636
Advances 49 Advances 664 Advances 2,148 Advances 11,803 Advances 47,025 Advances 140,318
Deposits 56 Deposits 885 Deposits 3,343 Deposits 21,384 Deposits 87,900 Deposits 316,493
The 1960S.. The 1970S... The 1980S... New

The 1950S...
Dawn of Restructuring Trends and
The Beginning
Developments & Growth Alliances
» During the 1950s, the Bank » In the 1960s, NBP Started » During this period, there » In the 1980s, the
undertook the expansion of the School Scheme to was growth in the branch Government announced a
the branch network. popularize the banking and network both at home and three-year plan for
savings habit. This scheme abroad. the implementation of an
» The first overseas branch was offered to industrial Islamic Economic System.
was established in Jeddah, workers and school & » The 1970s witnessed the
Saudi Arabia (1950), a branch college students. nationalisation of Pakistani » NBP introduced a separate
in London (1953) and another commercial banks and comprehensive
branch in Baghdad (1957). » Operative in 1,189 schools, operating in the country. procedure for banking
deposits raised to PKR 2.9 under this system from
» The Bank took Government million. By 1969, NBP’s » In 1972, the National Bank branch level to the Head
Treasury Operations and “worker scheme” raised of Pakistan evolved the Office.
established currency chests the total deposits by factory Supervised Agricultural
at various locations. It workers into PKR 2.84 Credit Program, and » Consolidation and
managed currency chests million and the number of introduced a new reorganisation resulted in
or sub-chests at 57 of its accounts opened had methodology of viable closure of 286 branches
offices. Deposits which touched 8,767. credit for small farmers from 1,646 branches (1979)
constituted 3.1 percent of available at their doorstep. to 1,360 branches (1989).
total deposits of all Pakistani
banks in 1949 had risen to » On January 1, 1974 » Overseas expansion
38 percent by 1952. National Bank of Pakistan continued with the opening
along with 13 other of a representative office in
scheduled Pakistani banks Beijing (1981) and in Seoul,
was nationalised. South Korea (1985); the
latter was converted into a
branch in 1987.
» The Bank increased its

authorised and paid-up
capital twice during the
80s, gaining a much
broader and stronger
equity base.

After independence in 1947, Pakistan inherited a very weak financial system architecture. There was an
emergency need to have a commercial bank, “truly National in character” and capable enough to navigate
the country through the then uncertain times. This created your Bank, the National Bank of Pakistan. Your
Bank’s purpose and mission has been to support the financial well-being of the Nation, and to provide
strength in uncertain times - Then, Now and Always.
2010 2020 2021 2022 2023

Assets 1,037,750 Assets 3,008,527 Assets 3,846,684 Assets 5,240,425 Assets 6,652,707
Advances 477,507 Advances 983,255 Advances 1,113,392 Advances 1,230,522 Advances 1,398,077
Deposits 832,152 Deposits 2,418,966 Deposits 3,019,155 Deposits 2,666,184 Deposits 3,674,359
The 1990S... 2010 Till Today...

2000 – 2009...
Initiatives & Still Focused
The Millennium
Reforms & Driven
» The 1990s was a decade of » The decade witnessed a » PKR 30.4 Bn as Profit After tax in 2022. The Bank achieved
new financial reforms and restructuring programme, PKR 5 Trillion Milestone in Assets and became the largest
initiatives. where loss making branches bank in the country.
were closed or merged.
» The Bank became a SWIFT Number of Regions were » PKR 28 Bn as Profit After tax in 2021. Achieved
member in 1998. The reduced to 29. PKR 3 Trillion Milestone in Deposits.
facility provides modern
technology to Bank » National Bank of Pakistan » In 2020, the Bank recorded profit after-tax of
customers for prompt and went public with IPO of PKR 30.6 billion i.e. the highest ever profit in its history.
convenient cash transactions 23.2% shares and listing at
and remittances round the all domestic stock exchanges » In 2019, NBP became “PKR three trillion” Bank by closing
clock. (2001). its balance sheet at PKR 3,124 billion.
» In 1999, the Bank celebrated » In 2002, the Bank signed an » NBP was Awarded Agriculture Bank of the Year Award 2020.
its Golden Jubilee. By the agreement with Western
close of the decade, its Union. » In 2017, the Bank posted after-tax profit of PKR 23.03 billion.
market share had reached NBP became the ‘Two Trillion Rupee’ Bank.
around 22% and it remained » The Bank’s wholly owned
the largest financial institution Exchange Company » Reaching the 71st year of this great institution, we refreshed
in the country. commenced operations in our Vision to become the nation’s leading Bank enabling
February 2003. Sustainable Growth and Inclusive Development.
» NBP gained market » NBP made it to the Guinness Book of World Records by
recognition and received installing the World’s Highest ATM at Pak-China border.
over 30 international awards
» Won Bank of the Year Award 2015.
» The bank deployed Core Banking Application in 2015.
» In 2013, with the growing popularity of Islamic Banking, NBP

successfully launched its brand ‘Aitemaad’ to offer the true
spirit of Islamic Finance.

KEY EVENTS
NBP inaugurates Branch for PWD NBP Celebrates!
In line with SBP’s vision to transform banks’ branches President and the Senior Management celebrated
into disability-friendly branches for Persons with NBP’s Financial results for the half-year ended
Disability (PWD); NBP has inaugurated its first branch June 30, 2023
having state-of-the-art facilities for PWD on Shaheed
e Millat Road
NBP Banca Sales Convention 2023
The awareness ceremony for the NBP Banch

Empowering NBP’s Digital Future Assurance Sales Convention was held on Friday 10th
November 2023 in Karachi.
NBP Digital team met with President Mr. Rehmat
Ali Hasnie under the leadership of acting CDO Mr.
Sohail Malik to discuss future digital strategies and
transformation to enhance customer experiences and
streamline services.
NBP Annual Corporate Briefing 2023

At NBP Annual Corporate Briefing 2023, we show-
cased financial strength and customer-centered
strategies, emphasizing innovation and risk
management

President Visits NOWPDP Pilot Launch Digital Account Opening
Ceremony
Mr. Rehmat Ali Hasnie, President visited the Head
Office of the Network of Organizations On Monday 9th Oct 2023, the Digital Banking Group
NBP showcased Digital Account Opening in a
ceremony held at NBP Head Office for initiation under
the Pilot phase.
NBP & CAA Signs Employee

Banking Agreement
Under the aforementioned arrangement, NBP will

facilitate employees of CAA
NBP Annual General Meeting 2023
At NBP AGM 2023, we talked about keeping our

finances strong and making customers happy,
focusing on new ideas and innovations
Enhancing Leadership Skills & Grooming
With a view to develop NBP executives for future

needs of the bank and their professional growth and
Leadership Skills, JNMDC, L&DD, Karachi, organized
a training on “Enhancing Leadership Skills - Managers
Becoming Leaders.”

FINANCIAL CALENDAR
2023
Annual Corporate Briefing 10th March 2023
74th Annual General Meeting 30th March, 2023
1st Quarterly Financial Statements Approved by the BoD 27th April, 2023
Half-Yearly Financial Statements Approved by the BoD 29th August 2023
3rd Quarterly Financial Statements Approved by the BoD 24th October, 2023
Annual Financial Statements 2023 Approved by the BoD 22nd February 2024
2022
Annual Corporate Briefing 08th March 2022
74th Annual General Meeting 30th March, 2022
1st Quarterly Financial Statements Approved by the BoD 28th April, 2022
3rd Quarterly Financial Statements Approved by the BoD 28th October, 2022
Annual Financial Statements 2023 Approved by the BoD 28th February 2023
2021
Annual Corporate Briefing 24th February 2021
72nd Annual General Meeting 29th March 2021
1st Quarterly Financial Statements Approved by the BoD 28th April 2021
3rd Quarterly Financial Statements Approved by the BoD 27th October 2021
Analyst’s Briefing on 3rd Quarterly Financial Statements 01st November 2021
Annual Financial Statements 2021 Approved by the BoD 8th March 2022

BOARD OF DIRECTORS
Mr. Ashraf
MAhmood Wathra Chairman
Board Committee Membership
BHRRC | BIDC
Mr. Ashraf Mahmood Wathra served as Governor, State Bank

of Pakistan (SBP) from 29th April, 2014 till 2017. Prior to this,
he was working as Acting Governor since 31st January, 2014.
He represented Pakistan in several international forums and

served on the Board of Governors of the International Monetary
Fund (IMF), Asian Clearing Union (ACU) and ECO Trade and
Development Bank. He was also the council member of Islamic
Financial Stability Board. Since 1st July, 2015, Governor Wathra
was the co-chair of the Financial Stability Board - Regional
Consultative Group for Asia (FSB-RCG Asia), Basel, based at
Switzerland.
He held important positions within Pakistan including the

member of Monetary and Fiscal Policies Coordination Board,
National Financial Inclusion Strategy (NFIS) Council, National
Executive Committee on Anti-Money Laundering (AML),
Chair of the Board of Institute of Bankers in Pakistan (IBP),
NFIS Steering Committee, and Agricultural Credit Advisory
Committee (ACAC).
His association with SBP started when he assumed charge of

the office of Deputy Governor, on 11th March, 2013.
Prior to joining SBP, he has been associated with various

international and national banks and worked in various
regulatory regimes at leadership positions; including Singapore,
Hong Kong, Australia, Bangladesh, Sri Lanka etc. He also
served as a member of Board of Directors of Habib Finance
International Hong Kong, Habib Finance Australia and as First
Vice Chairman of Himalayan Bank Nepal for several years.
He started his career with Grindlays Bank Plc in 1978 after

completing his Masters in Business Administration.

Mr. Rehmat
Ali Hasnie President
BRCC | BTDC | BIDC | NYGC
Mr. Hasnie is President of National Bank of Pakistan since

August 2023. He has over 27 years of work experience in
the financial sector including stints in economic research,
capital markets, investment banking, treasury and credit
markets at various institutions in Pakistan. He is a financial
market professional with a MA in Development Banking
from the American University (USA). He has been with NBP
since 2010 and has been the Group Chief of the Inclusive
Development Group (IDG) since 2019. IDG is NBP’s most
recent and ambitious initiative to position the Bank as an
institution focused on priority sectors’ financing (i.e. SME
and Agriculture lending) to enable sustainable growth and
inclusive development in the country. Prior to this, Mr. Hasnie
was heading Investment Banking at NBP for many years.
He is presently chairing the Board of Pakistan Mortgage

Refinance Company as a nominee of NBP - a position he
has filled for the past 7 years. Further, he has also Chaired
the Board of First Credit & Investment Bank Limited as well
as First National Bank Modaraba as NBP’s nominee director.
The other companies in which Mr. Hasnie has also had
stints as a nominee Director of NBP are Pakistan Mercantile
Exchange Limited, Agritech Ltd and Fauji Akbar Portia,
Marine Terminals Ltd.
He is also a member of the Executive Committee of the

Pakistan Banks’ Association as well as the Member of the
Council of The Institute of Bankers of Pakistan.

Mr. Farid
Malik, CFA Director
BAC | BHRRC | BTDC
Mr. Farid Malik has over 28 years of diversified experience

and has worked on a number of infrastructure development,
project finance, corporate finance, capital markets regulatory
administrative and operational assignments both in Pakistan
and abroad. He is a CFA charter-holder and a graduate of the
London School of Economics.
Mr. Malik has served as the Chief Executive Officer/ Managing

Director of LSE Financial Services Limited (formerly Lahore
Stock Exchange Limited) and has also worked with Tomen
Power (Singapore) Pte. Limited and the Securities and
Exchange Commission of Pakistan. During his various
assignments, he has had extensive exposure to green-field
project based equity investments, limited recourse debt
financing facilities, cross border project financing facilities
including export credit agencies and multilateral lending
agencies financing facilities, risk allocation & management
techniques including hedging through derivative instruments,
due diligence methodologies, portfolio management, equity
and fixed income valuations, financial analysis, asset
securitization and capital market operations and regulations.
He is currently on the Board of National Bank of Pakistan

and Fauji Akbar Portia Marine Terminals Limited and has
also served on the Board of Central Depository Company of
Pakistan Limited and National Clearing Company of Pakistan
Limited. He is a Certified Director from Pakistan Institute of
Corporate Governance.
Mr. Malik has also previously served on the Boards of the

Privatization Commission, the Gujranwala Electric Power
Company Limited and the Pakistan Credit Rating Agency
Limited. He has also attended a large number of international
and local management courses, seminars and workshops
conducted by world renowned providers.

Mr. Ali
Syed Director
BAC | BHRRC | BRCC | BTDC
Scion of a highly respected family of Lahore, Punjab, Ali Syed’s

ancestry can be traced to Pirkot in the district of Jhang. Born
on 2nd December 1956, Ali did his Masters in Economics
from the Government College Lahore and then went on to
receive Masters Degree in Business Administration from the
George Washington University, Washington D.C.
Ali started his illustrious career in Marketing and Finance from

U.S.A. and worked with some of the best-known companies
such as The Time Life U.S.A., General Development
Corporation and Tandy Corporation. Back home, he founded
and managed successfully Amil (Pvt.) Ltd and Simzain
International.
He is presently heading Alltrac (Pvt.) Ltd as Chief Executive

Officer and is also the CEO of a solar energy company namely
IDC (Pvt.) Ltd. He is currently on the Board of National Bank
of Pakistan and is Chairman of National Insurance Company
Limited (NICL). He has remained on the Board of Directors
of many companies including Pak-Arab Refinery (PARCO),
Port Qasim Authority (PQA) and Pakistan National Shipping
Corporation (PNSC). He has made significant contributions
as a director in important committees viz., Audit & Finance,
Human Resource Committee, Technology & Digitalization,
Strategy and Risk-Management along with Technical and
Projects Evaluation Committee.
Ali Syed is widely travelled and specializes in successful

negotiating skills. Ali is happily married with two children

Mr. Amjad
Mahmood Director
BAC | BTDC | BIDC
Mr. Amjad Mahmood is currently having charge of Additional

Finance Secretary (IF/INV/IGF) with 32 years of diversified
work experience in Civil Services of Pakistan. He has served
in various executive positions during his service.
He has served as Advisor to the Board of Directors of the

Asian Development Bank (ADB). He has vast experience in
dealing with matters relating to the Securities and Exchange
Commission of Pakistan (SECP), State Bank of Pakistan
(SBP), National Bank of Pakistan (NBP), House Building
Finance Company Limited (HBFCL), National Security
Printing Corporation (NSPC) and other Financial Institutions/
Regulators/Organizations.
He holds a Master’s degree in Administration & Management

from the Institute for Development Policy and Management,
Manchester University, UK. He also holds Master’s degree
in English Language and Literature and International Affairs.
Mr. Amjad’s areas of expertise include Public Financial

Management & Public Administration. He has proven
capacity to work in a challenging atmosphere with diversified
stakeholders and against strict timelines.

Mr. Nasim
Ahmad Director
BAC | BRCC | BIDC | NYGC
Mr. Nasim Ahmad possesses vast experience in Asset

Management, Commercial Lending and Investment Banking
at senior management levels internationally. He initiated
issuance of sovereign bonds for the Islamic Republic of
Pakistan – coordinated with debt syndication team at
Deutsche Bank for making presentations to Ministry of
Finance in 2014-2015 and participated in annual reviews of
asset management in various countries including Switzerland,
UAE, Singapore, Thailand, Hong Kong, Macao and South
Africa.
He holds a degree in Development Financing from McGill

University, Canada, Law degree from Pakistan and Fellow
Institute of Bankers, London, UK.

Mr. Ahsan Ali
Chughtai Director
BAC | BRCC | NYGC
Senior Banker/Financial Sector/Public Policy and

Development/Investment and Planning/ PPP Specialist.
Key Skills: Financial sector, Infrastructure structuring,

development, implementation.
Over 42 years of banking and consulting experience with

international and domestic banks, Provincial Government
and its agencies, Multilateral Agencies and other foreign
donor agencies.

CHAIRMAN’S
REVIEW
Dear Valued Stakeholders,
I am delighted to present my 2nd Annual Review

Report as the Chairman of the Board. This year
marks the completion of the Bank’s 75 years since its
establishment as the Nation’s Bank in 1949. Over the
decades, the Bank has grown to become Pakistan’s
largest bank, establishing a rich legacy of serving the
nation.
Operating Environment
In my last year’s report, I highlighted the inevitable

macroeconomic challenges ahead. In the intervening
year, the global economy has experienced volatility,
influenced by geo-political tensions, restrictive
monetary policies, inflationary pressures, and
protective trade policies of certain countries. The
free flow of goods, including energy sources, around
the world can no longer be taken for granted.
The overall projections anticipate a
deceleration in average growth for the year
2024 with a modest upturn expected in 2025.
Building a Resilient NBP
In Pakistan, the economic landscape mirrors global A relentless and consistent implementation of the Bank’s
challenges, featuring high inflation, sluggish growth strategy continues to yield positive outcomes. The Board
and the executive teams are making steady progress
and diminished forex reserves. The GDP which
in building a stronger and stable Bank focusing on a
recorded 5.8% and 6.1% growth in FY2021 and robust compliance and risk culture. This has enabled the
FY2022 sharply contracted to 0.3% in FY2023 bank to grow securely and provide valuable support to
primarily due to floods, political uncertainties and customers amidst a challenging economic landscape.
challenging external conditions. Although domestic
The Board is well aware of the prevailing political
demand remained subdued in 1H2024, recent chaos, economic difficulties and resultantly stressful
months have seen a gradual alleviation of financial impact on the financial sector. Acknowledging
pressures, moderating inflation, stabilizing exchange the significant interdependency in our operating
environment, stakeholders well-being and
rates and a more accommodating stance on imports,
sustainability of the Bank, the Board has proactively
providing momentum to the economy with recovery in endeavoured to address critical challenges through
agriculture, LSM and the services sectors. GDP is now well-thought-out strategies. An astute and proactive
estimated to grow by 2.1% for FY2024Q1. approach to risk management is crucial in an unstable

operating environment. The Board ensures the was achieved in earning assets and in the Loan Book.
resilience of the Bank through optimum readiness
to combat emerging risks by providing an efficient I must acknowledge and appreciate that our
governance and responsive risk management performance in FY2023 is the outcome of dedicated
framework. and tireless efforts of our entire management team.
NBP Board has opted to retain the entire profits for Stakeholders will also appreciate significant
FY2023 to provide an adequate buffer against adverse improvements in key financial indicators such as
outcome of the “Pensions” case. We believe this is increase in net assets and value of each NBP share.
a prudent measure to overcome any potential stress At year end 2023, NBP value per share is PKR 179.91,
on our capital adequacy and to retain capacity for Tier 1 Capital Ratio stood at 19.16% and Total Capital
continuing future growth and create value for our Adequacy Ratio at 25.47%. This reflects strong buffers
shareholders in the longer term. in terms of capital adequacy vis a vis statutory minimum
ratios of 10% Tier 1 and 14% capital adequacy. Bank’s
The Board has remained mindful of addressing the liquidity and net stable funding ratios are robust at
legacy issues that stubbornly persist and remain 176% and 259% respectively against requirement of
a crucial challenge for the Bank. Nevertheless, we 100%.
have achieved significant progress in the key areas of
Compliance, Risk Management, Loan Book quality and Strengthening Compliance Culture
the all important Human Capital.
The Board has remained focused on promoting best
Strong Financial Delivery corporate governance practices adopting sound
and vigorous policy framework that instil a culture of
I am pleased to report that we closed FY2023 achieving compliance, accountability and reward throughout
an extraordinary growth for NBP, record operating the Bank. This attempts to address historical legacy
results and a deeper entrenchment in the market issues that continuously require unwavering focus on
and the Country’s banking arena. We ended the year enhancing technology footprint and internal controls as
with strong financial and operational performance, well as upgrading skill set of our human capital. New
navigating our way through stormy turbulence with talent has been inducted at both senior and middle
prudent and forward looking strategies which included management positions and wholesome plans were
in strengthening the Bank’s balance sheet through a approved for technological upgrades.
significant provisioning this year of PKR 14.5 Bn.
Moving forward we are restructuring, closing and
consolidating our overseas operations which have
The Bank has reported record pre-tax profits of PKR remained inefficient largely due to inadequate
101.2 Bn and after tax profits PKR 51.8 Bn for FY2023; bilateral trade volumes, huge compliance risk and
growth of 61.4% and 70.5% respectively over last lack of business opportunities from our target market
year; gross interest income at PKR 1,024.7 Bn increase customers. The Board maintains a vigilant oversight
of 103.6% and a marked growth of 78.8% in CASA on compliance and risk matters in the Bank’s
deposits; Total deposits at PKR 3,674 Bn are up by domestic and overseas operations.
37.8% over the last year. More so, a healthy increase
23% 18%

Public Sector Entities lies ahead. The volatile operating environment is
likely to have adverse consequences for households
Over the years the Bank has extended large financing and corporate customers alike, we will work hard
facilities to certain public-sector entities. However, to support our customers and clients through these
several of these entities have not performed difficult times. Going forward our focus includes
satisfactorily in their debt servicing obligations strengthening the Agriculture, SME and Exports
thereby inflicting a significant drag on the Bank’s sectors, enhancing capacity of local farmers and
income and resources. Recoveries achieved in public manufacturers and thereby contributing in meeting
sector debt has also remained far below expectations key macroeconomic targets.
however, the Bank is vigorously in pursuit to at least
recover the mark up in a short span of time. Furthermore, the Board places priority on integrating
social and environmental consciousness into the
Bank’s overall business strategy. Strengthening the
Looking Ahead Risk Management framework, advancement in our
Technology Platform and proactively addressing
As we navigate our way around these challenging governance anomalies in HR will prominently feature
times we remain confident in the Bank’s resilience to among our key priorities for the Bank.
overcome the threats in anticipation of an ongoing
macroeconomic stress being experienced. We seek continued support from the Government
We are optimistic that the newly elected government of Pakistan and advocate for early appointments
will maintain continuity and consistency in measures to complete the NBP Board which will further
necessary for the country’s economic rejuvenation. strengthen the Bank’s governance and oversight.
As the Nation’s Bank, NBP remains committed
to supporting all stakeholders towards achieving Appreciation
economic stability, development and financial
inclusivity. I would like to thank my Board colleagues for
their immense contribution during the year. Their
Our digital banking team is well positioned to continuing support and wisdom and tireless efforts
compete in the market place with digital offering are valuable for the Bank and all its stakeholders.
to Bank’s extensive customer base. The Bank is
committing sufficient resources in supporting this I am also grateful to the Government of Pakistan,
innovative business which has immense growth State Bank of Pakistan and other Regulators
potential in the domestic market. including the Regulators in the global markets for
their continuing guidance and support. We assure
The Board, the CEO and the Management have you of our continued commitment to achieve higher
steered well through the turbulent times in recent standards of strong governance and operational
past, however we are conscious that much work discipline in our Bank to measure up to their
expectations.
I thank all our 9+ million customers and business

partners for their continued loyalty and support.
I appreciate the efforts and contribution of all our staff

toward the enduring success of the Bank. The Bank
shall be fair equitable and transparent in its dealings
with the staff and this shall continue to be based on
the principle of loyalty and meritocracy.
Ashraf Mahmood Wathra

Chairman
February 22, 2024
Karachi.

NAVIGATING SUCCESS:
INSIGHTS FROM THE CEO
Dear Valued Stakeholders,

I am delighted to present this Annual Review as the
Bank enters its 75 years of service to the Nation and
playing its role in Pakistan’s economy. Over the past
seven and a half decades, the Bank has played a
pivotal role in the country’s financial landscape from
our humble beginnings in 1949 to becoming Pakistan’s
largest Domestically Systematically Important
Bank, our journey has been marked by growth, and
adaptability but without wavering on our responsibility
to our customers and stakeholders. The Bank takes
pride in a tradition of service and standing by our
customers not just in good times but more importantly,
in bad times. In so doing, we play an integral role
in the economic development of the Country.
Our commitment to enhancing national financial in 2024 and beyond within the context of “Serving
inclusion as well as access to finance, and contributing the Nation” – NATIONAL BANK PAKISTAN.
to Pakistan’s economic development, is a true
reflection of our focus on serving the country’s people Economic Background and Outlook
of all income group as reflected in the above couplet of
Allama Mohammad Iqbal. Our success is inextricably FY24, macroeconomic indicators have shown some
intertwined with the fortunes of Pakistan and its people; stabilization, raising the GDP growth to over 2.1%.
therefore, our financial success and profitability should Pakistan’s performance under IMF programs has
be viewed as a consequence of what the Bank does boosted market confidence, and forex reserves stand
and not as the raison d’etre of why the Bank exists. increased at $13.2 billion. Despite positive trends and
revenue growth, fiscal challenges persist that demand
Addressing you for the second time is both an honour continued vigilance and prudent financial management.
and a pleasure. It comes with great responsibility In general, the banking sector has remained resilient
of guiding NBP through the complexities of our and benefited from the high-interest rate environment.
dynamic landscape. In this message, I am excited With higher profits, healthy growth was achieved in
to offer insights about our operating environment, assets and deposits, although asset concentration
highlight the strategic strides we made in 2023, in government papers is a natural consequence
into our financial performance, and outline the of the prevailing macroeconomic environment.
strategic growth initiatives we plan to embark upon Moving from incurred to expected credit loss model

under IFRS 9 may lead to a one-time impact on banks’ In summary, NBP stands not only the Pakistan’s largest
equity, no significant impact on capital adequacy bank in terms of total assets, but also the highest
ratios is expected. With a newly elected Government capitalized bank with net assets of PKR 382.8 Bn,
on the horizon, adherence to sound macro policies depicting a 43% capital growth since 2020. Despite
and structural reforms is anticipated to continue so as significant economic and geopolitical uncertainties,
to ensure sustainable growth and systemic stability. evolving regulatory landscape, and the potential
contingencies, the Bank’s financial soundness indicators
Navigating the Challenges stand stronger than last year with a total CAR at
25.48%, Liquidity Coverage at 147%, Net Stable
As we review the financial performance of the past Funding at 251%. The Bank maintained highest credit
year, we take pride in the resilience displayed by your rating of AAA/A1+ for both long term and short term.
Bank in navigating a challenging economic landscape.
Our prudent financial management, innovative Contribution to Financial
solutions, and the dedication of our talented team Inclusion & National Priorities
which enabled the delivery of value to our stakeholders
without compromising on our ability to continue to Over the decades, NBP has steadfastly deepened its role
serve the Nation and maintain a stable and strong in driving the country’s economic dynamics by promoting
Bank. This has created strong value for our customers, ventures that create economic value, promote capital
shareholders, employees, and the wider economy in flows, create employment opportunities, have a positive
2023. Throughout the year, we supported our customers environmental impact and improve self-reliance in priority
in meeting their financial needs, as well as provided sectors. Having welcomed over 500K new customers this
attractive returns on deposit schemes, and extended year, NBP now serves a community of around 9 million
an additional PKR 193 billion of loans in the economy. customers, affirming its position as a critical financial
intermediary (the largest “Domestically Systematically
Highest Value Generating Important Bank” as per the State Bank of Pakistan)
Bank in the Country managing deposits totalling PKR 3.7 trillion for over seven
million depositors as well as loans amounting to PKR 1.6
This year, the Bank generated total revenues of PKR trillion extended to more than 500K million borrowers.
1,065.3 Bn. This makes NBP not just the highest, but also
the only bank in Pakistan having generated revenues of This year we acted as strategic partners with the
over PKR 1 Trillion in 2023. This achievement was fuelled Government of Pakistan in enabling various large
by a 40% growth in earning assets, coupled with higher projects of strategic nature aimed at creating jobs and
interest income, of PKR 1,024.7 Bn, i.e., a remarkable efficiency in the economy. A few to mention include
103% up YoY. Additionally, there was a 10.7% growth in the privatization of the Heavy Electrical Complex,
its non-fund income stream that clocked in at PKR 40.6 enabling the import of 100K laptops for distribution to
Bn. As part of our prudent risk management strategy, a youth under the Prime Minister’s initiatives, and a PKR
provisioning of PKR 14.4 Bn was allocated to buttress 27 Bn financing for an infrastructure project in Thar.
the Bank’s capital base. The Bank now holds specific
provisions of PKR 203.6 Bn, reflecting an impressive With a fresh disbursement of PKR 36 Bn this year, our
coverage ratio of 93%. Furthermore, general provisions ’Advance Salary’ product is catering to the financial
of PKR 30 Bn are also held to absorb unforeseen needs of over 265K families nationwide. This singular
shocks. Despite our proactive approach to provisioning, product for individuals has reached an outstanding
the Bank reported its highest-ever pre-tax profit at amount of PKR 91 Bn, making it the single largest
PKR 101.3 Bn - 61.4% up YoY, and an after-tax profit consumer finance product in the country’s banking
of PKR 51.9 Bn, marking a remarkable 70.5% up YoY. sector. Additionally, we serve 165K farming families
through agriculture loans with an outstanding amount
The Bank achieved yet another significant milestone, of PKR 90 Bn at the end of 2023. Furthermore, we
surpassing PKR 6.5 Trillion in its balance sheet, play a pivotal role as one of the primary fund providers
growing by 27% to reach PKR 6,652.7 Bn. This (PKR 750 Bn) to large corporations, supporting,
solidifies NBP as Pakistan’s largest Bank in total assets. not only their contribution to the GDP but also the

efforts to generate employment in the Country. Islamic Banking Expansion
In line with our ESG ambitions, we launched Roshan-
Ghar solar financing scheme to enable households to Islamic banking is truly synonymous with ’sustainable
install solar panels on their residences. To promote banking’, and as such the Bank remains committed to overall
financial inclusion, NBP opened over 10K Asaan growth of Shariah Compliant Banking in Pakistan, including
Accounts in 2023 to assist the Government of Sindh the expansion of its own “Aitemaad” banking. NBP’s Islamic
in facilitating in rehabilitation of the unbanked flood Banking total assets/balance sheet footing grew 28% YoY,
affectees of Sindh floods. Additionally, the Bank opened reaching PKR 140 Bn from PKR 109 Bn in 2022. The Bank
140K bank accounts for women this year, increasing expanded its Islamic Banking Windows ‘IBW’ network
the female accounts by around 25% (i.e., from 792K from 50 to 150, with up to 250 IBWs and conversion of 50
accounts to 990K accounts). The Bank also extended conventional branches into Islamic Banking planned for
loans to women and this area showed a growth in 2024. The growth of Islamic Banking within NBP will continue,
borrower accounts by around 19% from 31K to 37K in ensuring considerable outreach to NBP’s customers, and
2023. Concurrently, disbursements to female borrowers substantia rise in the contribution to the assets, liabilities
rose over 47% from PKR 11.5 Bn to PKR 17.0 Bn. This and profitability of the Bank over the next few years.
progress is a testament to our dedication to fostering
inclusivity and supporting the idea of economic Our Transformation Journey
empowerment of women promoting financial inclusion
in Pakistan. The Bank continues to work on introducing We continued to strengthen our key areas such as Risk,
new products that will cater to various markets Compliance & Controls, Information Technology, HR, and
within the broader national economic landscape. Digitial Banking, aligning ourselves with latest international
best practices. This commitment is upheld without
Our unwavering commitment to stakeholder concerns compromising on our fundamental principles of promoting
is reflected in our proactive engagement through financial inclusion, enhancing access to finance, and
platforms like the Pakistan Citizen Portal and the serving as a key driver of Pakistan’s economic development.
e-Kacheri sessions which are open to stakeholders
calling the President-NBP directly. In this regard, Our focus on enhancing the Bank’s risk & credit architecture
over 6,100 complaints were handled through these is bolstering the strength of the Bank’s balance sheet,
channels and appropriately addressed. These channels which is a vital element of sustainable value creation for our
which enable direct handling of customer issues is stakeholders. We maintain a steadfast commitment to the
unique to public sector entities and differentiates us industry-best practices for compliance with all regulatory
from the other private sector banks in the system. frameworks, including AML/CFT practices, safeguarding
the interest of its stakeholders. As part of our strategy
Integrating Sustainability to de-risk and scale back our sub-optimal international
footprint, we are strategically closing down some of our
Notably, the Bank received accolades for its CSR initiatives, overseas operations. Our focus remains on reviewing all
particularly in the areas of women empowerment, locations on the basis of profitability, sustainability, and
education, health, and support for differently-abled potential market prospects as a basis to decide on exit or
individuals for which the Bank was recognised with stay. We have strengthened our risk & compliance checks to
various awards in 2023. Given the climatic risks in Pakistan ensure adherence to all applicable laws, rules, regulations,
(as evidenced by the recent floods), the Bank is further and codes reflecting our commitment to good governance
strengthening its processes to comply with the ESRM not just in Pakistan but also in all our international locations.
Implementation Manual (launched by the SBP) and the
UN SDGs. NBP endorses the objectives of the ESRM for We are constantly investing in technology upgradation
reporting on environmental and social-related measures to position as a digitally competitive, agile, and secure
of the banks. This year we supported various projects and bank driven by data and innovation. The upgrade of
events for multiple causes with PKR 88 Mn in initiatives for our core banking application will continue through
which a detailed report is given elsewhere in this Annual 2024, alongside the strengthening of our cybersecurity
Report. Moving forward, we have clear plans to adopt posture. In addition to the continued onboarding of
Global Reporting Initiatives for sustainability reporting. qualified human resources in these areas, substantial
investment in hardware and software will continue
Profit After CAR Agriculture CSR Female

Tax Loans Initiatives Accounts
PKR 51.8 Bn 25.47 % PKR 90 Bn PKR 88 Bn 990K 25%
PKR 90 Bn
in 2024. Our revamped Mobile Banking application I am optimistic about the Bank’s future journey. Our
caters to an ever-growing customer base where future ambitions are anchored in a commitment
reliance on the conveniences it offers in executing to continued excellence, embracing change, and
everyday financial transactions is evidenced by staying at the forefront of the financial industry.
a phenomenal near 100% rise in the number of We aspire as NBP to be known for operational efficiency,
transactions conducted in 2023 as compared to strong product delivery, customer service and robust
2022. The Bank remains dedicated to enhancing the liquidity, and high-quality management of its capital and
customer experience for its diverse customer base. risk. These goals aim to create an even stronger Bank
capable of fulfilling its obligations to its stakeholders.
We are continuously working to enrich our human Over the next three years, we aim to leverage our
capital. This is being achieved through providing investments in technology to create a Bank that not
colleagues with the skills and capabilities to fulfil their only earns trusts, but also delivers quality service to
potential and build a high-performance culture which all its stakeholders. Our five major business lines will
includes offering reskilling programs to build skills in offer a comprehensive product suite for every Pakistani,
software and data engineering, supporting future talent achieve high returns while proactively integrating the
through our early career programs, and developing a ESG factors across our business verticals. We will
new approach to performance management. This year, persevere in driving operational efficiency across the
our staff received 36,500+ trainings (2022:26,905), of Bank by simplifying decision-making, streamlining
which 2,475 were in Islamic Banking. Effective steps our workforce, upgrading legacy systems and
were taken to promote diversity in line with the ‘Banking accelerating the pace of digital delivery. This approach
on Equality Policy’ of the SBP. This year, 22% of total will bring greater transparency and efficiency in
hirings were women, and 1.1% of the total workforce are our operations, while we consistently manage the
individuals with disabilities. The Bank will continue in its bank in a risk-prudent manner to avoid unnecessary
efforts to improve the gender-mix in its workforce as well credit costs and operational losses, instilling greater
as encouraging employment of persons with disabilities. confidence in our shareholders and investors.
NBP has once again demonstrated its commitment
to diversity, equity, and inclusion (DEI) by securing an Acknowledgment
impressive seven awards at the prestigious Global
Diversity, Equity & Inclusion Benchmarks Awards 2024. As we celebrate our Diamond Jubilee, I extend my
gratitude to our 15,000 team members who have
Standing with the Nation been integral to our success and strategic delivery in
2023. Their hard work, enthusiasm, and dedication
While the financial and operational goals outlined have set the stage for the future course outlined
above are critical to our success, they represent only above. 2024 will be a crucial year for NBP and I
part of the picture. Our commitment and deep roots am confident in our colleagues’ capabilities and
across the country have shaped our vision, aiming at commitment to exceed stakeholders’ expectations.
enabling sustainable growth & inclusive development
for the nation. As part of this resolve, we aspire of
NBP to not just be a larger version of other domestic
commercial banks but to serve as a vehicle that delivers
and supports the national priorities aligning with
Pakistan’s developmental goals and national prosperity.
As part of this commitment, Agri, SME, Retail and
women entrepreneurs remain priority target markets,
recognising that access to finance is crucial for robust
economic recovery in the country. These goals are
pursued with the perspective that a strong & resilient I extend my heartfelt thanks to the Board of Directors for
balance sheet, delivering sustainable performance, their contribution and support during 2023. I would also
will not be compromised. We are cognizant of the thank the Ministry of Finance, and the State Bank of
challenges prevailing in our operating environment, and Pakistan for their continuous guidance. The continued
believe that the effective measures being taken by the trust and support of our customers has been crucial to the
Government of Pakistan and the State Bank of Pakistan Bank’s success, and for this, the NBP team is ever grateful.
will lead to stability and sustainability for the economy.
2024 and Beyond Thank you,
As we celebrate 75th anniversary of the Nation’s Bank,

it stands not merely as a milestone but a testament to Rehmat Ali Hasnie
our enduring commitment to Pakistan. With gratitude President/CEO
for the past and enthusiasm for the future, we eagerly February 22, 2024
anticipate the next chapter in our shared history.
Building upon the strong foundations set out earlier,

DIRECTORS’ REPORT
TO THE MEMBERS
Dear Stakeholders, took challenging steps to bring the fuel, electricity and
natural gas prices closer to costs. It is appropriate that
The Board of Directors are pleased to present the the SBP maintains a tight stance to ensure that inflation
Annual Report of National Bank of Pakistan “NBP” returns to more moderate levels. Inflation levels seem
“the Bank” together with the audited financial to have peaked. Keeping in view the latest round of
statements for the year ended December 31, 2023 energy tariff hikes, the central bank has projected
and the independent Auditors’ Report thereon. inflation range to 23%-25%. Assuming sustained sound
Proper books of account have been maintained macro policy and structural reforms implementation,
and these financial statements fairly present the inflation is expected to return to the SBP target and
Bank’s state of affairs, the result of its operations, growth continue to strengthen over the medium term.
cash flows and changes in equity during the year.
Pakistan’s performance under the IMF programme
Operating Context and other bilateral arrangements is providing market
confidence and exchange rate stability following
Globally, economic growth has been volatile over recent significant shocks in FY2022-23. Pakistan’s total
quarters. In part, the slowing trend for global growth liquid foreign exchange reserves increased to $ 13.2
mirror the impacts of tightening in monetary policy and billion on January 29, 2024, with SBP’s reserves
restrictive lending strategies aimed at fighting inflation. stood at $ 8.2 billion and Commercial banks’ reserves
While the supply-side pressures triggered by COVID-19 remained at $ 5.0 billion, while the exchange rate has
have gradually eased cross-border trade activity been broadly stable. The current account deficit is
remains fragile, inflation remains above the central expected to rise to around 1.5% of GDP in FY24 as
bank targets in most regions and economic conditions the recovery takes hold. On the fiscal front, despite
remain challenging for developing economies and the encouraging revenue performance, the expenditure
adverse prone countries. Going forward, with signs of side remains under pressure attributed to higher
inflation moderating faster than expected could lead mark-up spend. However, government measures to
to easing of financial conditions and broadly balancing control non-mark up spending is helping in improving
the risks to global growth. The slowing inflation trend the primary surplus. The overall fiscal deficit has
in advanced economies has increased the likelihood been widened by 2.3% of GDP, while the primary
that most major central banks have either reached the surplus improved by 1.7% of GDP during Jul-Dec
end of their tightening cycle or are near the peak. The FY24. A surge of 46 % was observed in revenue
World Bank has recently projected Global growth at 3.1 collection, fuelled by above 100% increase in non-tax
% in 2024 and 3.2 % in 2025, with the 2024 forecast collection while a 30% rise in tax revenues. Although
0.2 %age point higher than October 2023 projections the high markup payments challenge continued,
(though below the 2000-2019 historical average) austerity measures are being implemented to ensure
on account of greater than expected resilience in sustainable fiscal accounts by the end of FY24.
several large economies and developing economies.
Pakistan Stock Exchange. KSE-100 Index that
Pakistan Economy surged more than 60% in 2023, making it the best
performer among the Asian frontier markets. 2023
Pakistan Economy In first half of FY24, macroeconomic emerged as the year of turnaround for the Pakistan
conditions have gradually improved, leading to a Stock Exchange (PSX) as the KSE-100 hit new peaks
revival in overall economic activity compared to the and emerged as the best-performing asset class in
challenging FY23. This persistent uptick has resulted the country, delivering a return of nearly 55% in the
in improved GDP growth of above 2.1% in the first half 12-month period (in rupee terms). The KSE-100 Index
of FY24, with expectations for continued growth in the signed off 2023 at 62,451.04, an increase of 22,031
second half and thereafter. In 2023, the authorities points or nearly 55% in calendar year 2023. With clarity

(PKR ‘Bn)
No. Key Items Item 2023 2022 Growth
1 Investments – Net 4,403.4 3,477.4 26.6%
2 Advances (net) 1,398.1 1,230.5 13.6%
3 Total Assets 6,652.7 5,240.4 26.9%
4 Deposits 3,674.4 2,666.2 37.8%
5 Borrowings 2,177.7 1,940.5 12.2%
6 Net Assets 382.8 300.8 27.2%
7 Break-up Value Per Share 179.9 141.4 27.2%
8 Islamic Banking Total Assets 140.2 109.3 28.2%
In the prevailing interest rate scenario and rate deals to retail deposits and consumer finance.
expectations, our investment book predominantly NBP Aitemaad closed deposit at PKR 113.8 Bn at
has a shorter-term maturity profile with 93% on the the end 2023, compared to PKR 93.6 Bn depicting
investments held under available-for-sale category. a 22% YoY growth, while CASA growth was 27%
As of December 31, 2023, total deposits with the YoY. At end of 2023, total deposit customers stood
Bank amounted to PKR 3,674.4 Bn as compared at 250K, showing a YoY increase of 12%. In line
to PKR 2,666.2 Bn at the end of 2022. Major share with our strategy for promoting Islamic banking, we
of the Bank’s funding comes from sticky customer expanded Islamic banking windows network from 50
deposits that contribute 86.2% of the total deposits. to 150 during the year and are committed to further
With current deposits amounting to PKR 1,970.5 Bn extended up to 250 by the end of 2024. With total
or 53.6% of the total deposits, the Bank maintains operating income of PKR 8.2 Bn (48% up YoY),
a strong liquidity profile. The Bank maintained its Islamic banking operations posted pre-tax profit of
CASA ratio high at 78.8%. Detailed coverage of PKR 3.53 Bn, depicting a massive 53.6% growth YoY.
the financial performance and other organizational In light of the judgement of the Federal Shariah Court,
development is also given elsewhere in this Annual NBP Aitemaad has initiated the plan for conversion
Report. The Bank has enough resources to meet of conventional products in a Shariah compliant way.
all its financial obligations and hasn’t defaulted in
payment of any debt or other financial obligation. Material changes subsequent to
The Balance Sheet Date
Islamic Banking
No material event has occurred subsequent to the
The Islamic banking business is one of the fastest Balance Sheet date that requires adjustments to the
growing segments within the Bank. NBP Aitemaad’s enclosed financial statements.
total assets increased to PKR 140.2 Bn at the end
2023 from PKR 109.3 Bn at the end 2022 recording Principal Activities
significant growth of 28.2% YoY. Whereas, total
earning assets recorded a 24.3% YoY growth Principal activities of NBP during the year remained
reaching PKR 125.4 Bn compared to PKR 101.0 Bn at same as in prior year and included general
end 2022. NBP Aitemaad offers the entire spectrum banking services, credit, ATM and debit cards
of banking products, from large-ticket corporate facilities, investment banking advisory, treasury

The actions implemented by the Branch and their Appointment of Auditors
associated validation by Internal Audit continue
to remain subject to review by its regulators. The existing auditors of the Bank Messrs BDO
Ebrahim & Co. Chartered Accountants and Messrs
Closure of Foreign Operations PwC A. F. Ferguson & Co. Chartered Accountants
will be retiring this year. Both the auditors being
As of December 31, 2023, after completing all eligible and have offered themselves for re-
the closure formalities required by SBP and appointment as external auditors of the Bank for
other regulatory bodies, international operations the year ending December 31, 2024. The Board is
at Representative Offices in Toronto (Canada) pleased to endorse the recommendation of the
and Tashkent (Uzbekistan), Jalalabad Branch Board Audit Committee for re-appointment of M/s
(Afghanistan), Sylhet (Bangladesh), Ashgabat PwC A. F. Ferguson & Co. Chartered Accountants,
branch (Turkmenistan) and Dushanbe Subsidiary and re-appointment of M/s BDO Ebrahim & Co.
Bank (Tajikistan) have been closed. Additionally, Chartered Accountants to be the auditors of the
the licenses of Almaty (Kazakhstan) and Baku Bank for the year ending December 31, 2024.
(Azerbaijan) have already been cancelled and both
are now under closure process along with Bishkek Contribution in SBP-led Initiatives
(Kyrgyzstan) and Chittagong Branch (Bangladesh)
which are also currently under closure process. In pursuit of its Vision to enable inclusive development,
Further, closure of the Paris branch which has NBP has been actively supporting the Government
been initiated after obtaining regulatory approvals. and SBP-lead initiatives for increasing financial
inclusion and has extended financings under various
Impact of the Bank’s Business on the refinance schemes and initiatives.
Environment
Endorsement
The Bank acknowledges the importance of
environmental considerations in its operations. The following information has been provided
Although the Bank’s core activities do not exert elsewhere in this Annual Report. The Board is
a direct influence on the environment, we have pleased to endorse the same:
proactively embraced Green Banking initiatives
aligned with the SBP’s Green Banking Guidelines. 1. The Management Statement of Internal Controls
This commitment aims to facilitate financing 2. Risk Management Overview
that fosters the transformation of our economy 3. Report on Corporate Social Responsibility
into a resource-efficient and climate-resilient initiatives
one. The integration of social, economic, and 4. Pattern of Shareholding
5. Credit Rating and Awards.
environmental considerations into our business
Future Outlook
strategy and decision-making processes
underscores our dedication to a holistic approach.
The outlook for the Bank’s financial performance and
outcomes is closely linked to the levels of economic
Following the guidelines provided in the Environmental
in the country. Your Bank will continue to play its
& Social Risk Management Implementation Manual
due role in supporting a robust economic recovery
by the State Bank of Pakistan, both the Board
in the country, while also maintaining a strong &
and Management are resolute in establishing an
resilient balance sheet to sustainably create value
Environmental and Social Management System.
for its shareholders. The Bank’s business strategy
A detailed overview of the Bank’s CSR initiatives &
will remain focused on financing and supporting
activities throughout the year is provided separately in
underserved sectors including SME, Microfinance,
this report, highlighting our commitment to the society.

�
Agriculture finance and the Government initiated
subsidised schemes as well as Islamic financing.
Acknowledgement & Appreciation

�‫��ر�د�اور��ا�دي�ں��ا�ر��۔‬
��‫ا��رز��ار�ر�ا��ا��طاور�ار‬
The Board expresses gratitude for the ongoing
commitment and dedication exhibited by our
employees in ensuring the uninterrupted provision �‫��ارر��ا��ط��ا��دارادا��ر��۔‬
of banking services to the Nation. We extend
acknowledgment to the Government of Pakistan, ‫ا��اور��وع‬،��‫��و‬،SME ��‫��رو�ري‬
��‫��يوا�ا�ں��ا��ظ�ں��ا‬
the State Bank of Pakistan, the SECP, and other
regulatory bodies for their unwavering support
which has been instrumental in enabling the Bank
‫اور�و��زر��۔‬
to realize its full potential and actively contribute
to the socio-economic development of Pakistan.
In addition, we extend our appreciation to our

�‫ا�اف و‬
current team members and express gratitude
to the retiring director, Mr. Asif Jooma, for their
‫�رڈ�م��ت��ا��رے�ز��ري�م‬
collective contributions. Their efforts have
played a pivotal role in fortifying the Bank, ‫اور‬،��‫ا�اي‬،‫ا��آف��ن‬،‫اور��ادا��۔��ن‬
making it resilient and instrumental in fostering
inclusive growth opportunities for the Nation. ‫د�ر��ياداروں�ان��ل��اج��ں‬
For and on behalf of the Board of Directors ‫��اس��ا��دارادا��وها��ں�ادراك��اور‬

‫��ن��وا�دي��ل�دارادا��۔‬
Rehmat Ali Hasnie Ali Syed ��‫�ا��ده��ارا��اج��اورر‬،‫اس��وه‬

‫وا�ڈا��بآ��ا��ون��ان��ادا��۔ان‬
President & CEO Director
Karachi ��‫ا��ار��اور�م‬،��‫��ں��ط‬
‫�ا��وغد��ا��دارادا��۔‬
Dated: February 22, 2024
��‫�رڈآفڈا��ز��اوراس‬
�� ‫ر‬
��‫ڈا‬ ‫�راور�اياو‬
�‫�ا‬
2024‫�وري‬22:�‫�ر‬

‫آبو�ا��ار��وغد��۔�ري�رو�ري��اور‬ ‫�۔�� اروں��ٹ ‪��47‬دي�اتاور��ر�ل��‬
‫��زي��‪،‬ا�دياور��ت�ا�ما��‬ ‫��ا��ت��ا�رے��د��ل��۔‬
‫�ري��وا��۔‬
‫�ر�اورر�‬
‫�� ‬
‫�� ‬
‫ا��آف��ن��اور��ر��ا� ��ل‬
‫�ا��ر��م��ا�ق�ا�‪�،‬ا�‪�،‬ا�اور��ں�‬
‫��ا��دهر��ط��‪�،‬رڈاورا��دو�ں��اور��ا�م�‬
‫��م�‪،‬اورا�رون�اور�ون�ا��اور‬
‫�م��م��م�۔�� ‪CSR‬ا�ا�تاور�ل��ں�‬ ‫�‬
‫�ول��ورت��۔��ا�رو��ول‪،‬‬
‫��هاسر�رٹ�ا��ا��‪��،‬ے��ريوا��‬
‫ا��ر�‪،KYC ،‬ڈ��در�اور�ا�اور��زي��ري‬
‫ا��۔‬
‫‪�� MIS‬ر��ل�ا��ز��۔‬
‫آڈ�ز��ري‬
‫��رك�ا��اورر��ت‬
‫�� ‬
‫��‬
‫��دهآڈ�ز�ز�ڈياو � � �ا�ا�ا��ر�ڈا�ؤ �اور�ز�ڈ��‬
‫�� ‬ ‫�رڈآفڈا��زاور�آ��ا��‪��،‬رك�ا��‬
‫��‬
‫اےا��ا��ر�ڈا�ؤ �اس�لر��۔دو�ںآڈ�ز‬
‫��ركا�ڈ�ر�آف��و�اور�رلر�رو��ف��ري‬
‫ا��اورا�ں�ا�آپ� ‪31‬د� ‪��2024‬وا��ل��‬
‫�ده�ا�ر��رروا�ں��ا��رروا�ں��۔�آ�اور�رڈ‬
‫��و�آڈ�ز��ر�دو�ره�ري��۔۔�رڈ ‪31‬د�‬
‫�ا��ا��رير��‪��،‬ا��و�ام��ا��‬
‫�آڈ�ز��رڈآڈٹ��ز‬ ‫‪��2024‬وا��ل��‬
‫�� ‬ ‫ر��۔�ا��ذر��ا�ا�تاورا�رو�آڈٹ�ذر�ان�‬
‫��‬
‫��ا��ر�ڈا�ؤ ��دو�ره�رياور�ز�ڈياو‬ ‫�ڈ��اےا�‬
‫�� ‬ ‫��اس�ر��ز��ے��ر��۔‬
‫��‬
‫ا�ا�ا��ر�ڈا�ؤ ��دو�ره�ري��رش��س‬
‫��۔‬
‫��آ��ش‬
‫ا��ز��دتا�ا�ت��ا�‬
‫‪31‬د� ‪،�2023‬ا��اورد�ر��ياداروں��ف��م‬
‫�ش�ر��رروا�ں��‪�،‬ر�)�ا(اور��)از�ن(‪�،‬ل‬
‫��ل��ا�وژن��‪��،‬‬
‫آ�د�ا�)ا��ن(‪�)�،‬د�(‪،‬ا�آ�د)��ن(�ا��هد��‬
‫��اورا��دت�ا�ا�ت��ل�ر��ر��اور�ري‬
‫�ا��ا�آ��اوردو�)��ن(�ذ��د��۔��آں‪،‬‬
‫��ا�ںاورا�ا�ت��ا��۔‬
‫ا��)�ز�ن(اور��)آذر��ن(��خ��اوردو�ںاب‬
‫�‬
‫��‬ ‫�� )��ن(اور��ا�)�د�(�ا�ل��۔��‬
‫��س�ا��ش‪�،‬ر��ي�ري��وع��۔‬
‫اس �� ر�رٹ � درج ذ� ��ت �ا� � � �۔ �رڈ اس � �� ‬
‫�� س �� ۔‬
‫��ت��رو�ر�ا�‬
‫ا�رو� �ول � ا�� ن‬ ‫‪.I‬‬
‫ر� � � ��ه‬ ‫‪.II‬‬ ‫�ا��ں��ت�ا��۔ا��دي‬
‫�ر�ر� �� ذ� داري � ا�ا�ت � ر�رٹ‬ ‫‪.III‬‬ ‫��ں��ل��اهرا�ا��ڈا��‪��،‬ا��‬
‫� �� ‬ ‫‪.IV‬‬
‫��ا�ا�ت��ل�ر��ل��۔اس‬
‫��ٹ ر� اور ا�ارڈز۔‬ ‫‪.V‬‬
‫�م��ا��ري��و��ظ��اور‬
‫‪50‬‬ ‫‪NATIONAL BANK‬‬ ‫‪PAKISTAN‬‬

‫ا� ‪��،1974‬ا�‪،‬اورا��آف��ن��ا�ت��۔‬ ‫ذ� داري � ر� ‪ �98.7‬رو� ��۔�� آں� � � � � �رت �‪،‬‬
‫اس��ظ�‪�،‬رڈ‪،‬و�ً��ً‪��،‬ن��ري��‪�،‬رڈ�ا��ں�‬ ‫�ل ‪ �� 2024‬ا�دي �� ‪ �13.5‬رو� � � � ��۔‬
‫اس��ں�ا��ں��و��اس��اور�رش�ے‬ ‫�� را� � �د �‪�� ،‬ره �� ر� � � ان �� اروں � �‬
‫ا�� ذ� داري � �� و� � � � � �� اس �� ز�ر‬
‫�‪��،‬اس�ح��و��ود�ا�ر��۔��ا��ف‬
‫�� ا�د �۔‬
‫�و�ً��ً��اورا�ارا��ا��ا�مد��و�‬
‫�ا��م��۔اس��ظ�‪�،‬رڈاس�ت��‬ ‫آڈ�ز�ر�رٹ��زورد��ا��و��‬
‫��ا��و��اسا�از��رڈ��ارا��‬
‫آزادي�ا�ل�۔ ‪�2023‬ڈا��ز�ادا��و��ٹ ‪�41.2‬‬ ‫�و�آڈ�ز��رز�ا�ر�رٹ��ٹ ‪��25.3.4.1‬ف��د��‬
‫�� اروں � �ف �� د�� ر��ڈ �ز� � �ف �‬
‫��اروں�دي��۔‬
‫�� ره �� ر�ل � و�� ۔ � � اس � ��‬
‫�وں � را� �‪� � � ،‬س اس �� رٹ آف ��ن �‪� ،‬‬
‫��ر�د��ں�ا�‬ ‫�‬
‫�� در�ر �ل �ر � �ط �� د� �۔ � ٰ ��ا‪ � �� ،‬در�ا�ں‬
‫� � �‪�� ،‬ع � � � �� ا�ات � ‪31‬د� ‪ �� 2023‬وا�‬
‫��ں‪،‬ا��ںاور�ا��ا��‪،‬اس�‬
‫�ل � �� اروں � �� ۔‬
‫��ں��‪�،‬ي‬ ‫�ر�د��ا�ڈا��۔�ل��ر��ي‬
‫� �‬
‫�� ‬
‫وا��ا�ں��ز��‪،‬ڈ�زٹ�و ��‪��،‬ري�ا��‬ ‫��اور��‬
‫�رو�ر��‪��/‬آ��‪،‬اور��ري�ا�ؤ��ذ۔�‪��،‬‬
‫� � ‪ �2023‬دوران �� در� � ا�ر�ں � ��ں‬
‫��ں��ا��ا�ضد�ه��ا��ض�ذ�دار�ں�‬
‫�ي �� ۔ � �� ا�� ‪� (CET1) �1‬‬
‫�و��را��مر��ر�ں�ا��ادا��‬
‫�� )‪�� ،19.16%(2022:16.30%‬‬
‫��۔اس��آ��ں�وا��۔��‪�،‬ا��‬
‫)‪25.47%(2022:21.59%‬ر�۔ � � �ر� � �� ‪ �2023‬آ�‬
‫ادارے��ر�ا��دار��را��اور��اوراس�ا�ا�ت�اسا�از�‬ ‫� ‪� �� (2022:3.08%) �3.12%‬ر� اور �� ‬
‫��م��وها�دو�ے��رز��ا��ے۔‬ ‫� �� ‪ (2022:147%)، 176%‬اور‪(2022:251%) 259%‬‬
‫� ان � ‪100%‬ر��ي �ورت � �� ا۔‬
‫�ل�دورانا��‬
‫��ٹر�‬
‫�ل�دوران‪�،‬رو�راور��ت��ں�ر��‪،‬ا�‬
‫��ر��ط��زرا��ٹ��‪�،‬ر�آؤٹر�‪،‬‬ ‫��ن�دو�ں��ه��ٹر�ا�ں�ذر��'‪� 'AAA‬در�د��‬
‫�� ‬ ‫� � �‬
‫ا��ري��وغ‪،‬آ�� اورا�ا��ط��‪،‬اور�� و�ه‪،‬‬ ‫�۔�ن ‪�،�2023‬ز ‪��VIS‬ٹر��ا�ا�ن��ٹ‬
‫ا��ا�ا�تاوران��اس��ر�رٹ��ں��‬ ‫ر��''‪��''AAA‬دو�ره��‪��،‬ن��‬
‫ذ��۔‬ ‫��ف�دي��وا��ز�ده��ٹر��۔ا��ح�ز�ا��ٹ‬
‫ر��در��ي�ر'‪(AAA ��)'AAA‬اور‬
‫��در��دي�اتاور��ر�ل‬ ‫��ت��ٹر��)‪��'A1+'(A-One Plus‬ر��۔‬
‫ا��رو�ري�ڈل��‪��،‬دي�ات��۔اس�‬ ‫ڈا��ز��و�‬
‫�ا��ر�‪�،‬رڈاس�ت��ے�ا�م��ں‬ ‫��رز� ‪��2020 ��27‬ها��ل��رڈاور�رڈ‬
‫اور��وركانا��ات��اور��د��‬ ‫�ں�ا��ں��نا��‪/‬آزادڈا��ز��و��‬
‫�‬
‫��۔اور��اس�ح��ات��و��ت��‬ ‫� ��‬
‫��ريدي۔��ا�ق�ا�� )��(‬
‫‪ANNUAL REPORT 2023‬‬ ‫‪51‬‬
‫�رڈآفڈا��ز��ں‬ ‫��ر��ا��ں‬
‫‪ � 2023‬دوران �رڈ آف ڈا��ز � درج ذ� ��ں �� ‪:‬‬
‫� � � �ر� � � �� ا� وا� � � آ� � � � � ��‬
‫‪ .1‬و�� ‪� F.1 (11) Bkg-III/2017-90‬ر�‬ ‫��ارے � ا�� ورت �۔‬
‫‪� 18‬ري ‪ � 2023‬ذر�‪� ،‬ب ا�ف �د و�ا � �رڈ � ��‪� ،‬ب ا�‬
‫�د � �ن ا�� ڈا�� ر �‪� ،‬ب � � اور �ب � ا� �ر آزاد ڈا�� رڈ‬ ‫��ں‬
‫� �� ۔‬
‫�ل � دوران � � �دي ��ں � �ل � �ح � ر� اور ان �‬
‫‪� .2‬ب آ� � � �ر ڈا�� ري � ا� � �ل � �ت �ري � اور‬
‫�م � ��ت‪�� ،‬ٹ‪ATM� ،‬اور ڈ� �رڈ � ��ت‪� �� ،‬ري �‬
‫‪� 08‬رچ ‪ � 2023‬ر�� ۔؎‬ ‫�� ‬
‫ا�وا�ري‪�� ،‬ري اور �� ر�‪� ،‬ؤ� اور �ل ��‪� ،‬ا�� ‪� ،‬‬
‫‪� .3‬ب �� ‪� � 2023 �� 26‬ر ڈا�� ا� � �� ت � �‬ ‫�‪ ،‬ڈ� �‪� ��،‬ا��ا� �رت اور ��ت زر و�ه۔ � � ذ� ادارے‬
‫�‬ ‫�� ‬
‫اور ‪� �2023 �� 25‬ه � �� ل � � �ا�� رز �‬ ‫ا� �ر� � �� ا ��‪� ،‬ر�‪ � � ،‬اور ��ر� �و�� ت �‬
‫ذر� دو�ره ڈا�� ۔‬ ‫�� ت � �� ۔‬
‫‪ .4‬و�� ‪�F.1(9)Bkg–III/2022‬ر� ‪ 07‬ا�‬ ‫�رڈ��ف��ر�اورذ�داري‬

‫‪ � 2023‬ذر� �ب ر� � � � � �ل � �ت � � � �‬
‫�ر‪� CEO/‬ر �۔‬ ‫�رے �ل � دوران‪� ،‬رڈ � �� دت اور ا�� ت �ا� �� ‬
‫ذ� داري � ا� �دار � ا�م د� � �� ز ر�۔ �رڈ � �م �ج � � ��ه‬
‫اس � �وه �اه �م اس �� ر�رٹ � �� )�ر�ر�‬ ‫��‬
‫�� ‬ ‫��‬ ‫اس ر�رٹ � �ر�ر� �ر� � � د� � �۔ اس � �وه‪� �� ،‬ں‬
‫�ر�( رو�‪ ،2013 ،‬اور �� )�ڈ آف �ر�ر� �ر�( ر� ��‪،‬‬ ‫)�ڈ آف �ر�ر� �ر�(� �ا�‪ ،2019 ،‬اور � � � )�ر�ر�‬
‫‪� � � �� 2019‬ن د�۔‬ ‫�ر�( رو�‪� � � �2013 ،‬رے � ا� � ا� �ن د� � �۔ �‬
‫�ر�ر� �ر� � �‪� ،‬رڈ � �ں � دي �‪ � � � ،‬ا�ل �� ‬
‫‪�2023‬دوران�رڈآفڈا��ز‪2023‬اور�رڈآف‬
‫ڈا��ز��ں�ا�س‬ ‫�‬ ‫�‬
‫‪� .1‬رڈ آڈٹ �‬
‫‪� .2‬رڈ ر� ا� �� ‬
‫�ل � دوران � �� وا� �رڈ اور �رڈ �ں � ا��ں � �ت اس‬ ‫‪� .3‬رڈ ‪HR‬اور �و� � �‬
‫�� ‬
‫�� ر�رٹ � �ن � � �۔‬ ‫‪� .4‬رڈ �� اور ڈ � �� ‬
‫‪� .5‬رڈ ا�ز� ڈو� �‬
‫�‬ ‫�‬
‫‪��- NBP.6‬رك �ر� �� )� � �ا� �رڈ ر� ا� �� (‬
‫��ر�ل‬
‫�رڈ �ں �رڈ � �ف � �ر �ه ا� � �� آف ر�� )� او آرز(�‬
‫�� ‪31‬د� ‪ �� 2023‬وا� �ل � �� ‬ ‫�� م �� ۔ � � � ��ں � � � اس ر�رٹ � �ر�ر�‬
‫�ٹ� ‪� � � �� 25.3.4.1‬۔ اور ا� آزاد‬‫��اروں � � � �‬ ‫�ر� � � دي � �۔‬
‫��‬‫�‬ ‫��‬
‫ا � ��ر� �م � �� د �‪� � � � � � ،‬رت � �� ‬
‫‪Total Assets‬‬ ‫‪Investments - net‬‬ ‫‪Deposits / CASA‬‬
‫‪PKR Bn‬‬ ‫‪PKR Bn‬‬ ‫‪PKR Bn‬‬

‫‪6,653‬‬
‫‪4,403.4‬‬ ‫‪3,674.4‬‬
‫‪852‬‬
‫‪5,240‬‬ ‫‪3,019.2‬‬
‫‪533‬‬ ‫‪1,398‬‬
‫‪3,477.4‬‬
‫‪2,666.2‬‬
‫‪78.8%‬‬
‫‪3,847‬‬ ‫‪1,230‬‬
‫‪82.3%‬‬
‫‪795‬‬
‫‪79.4%‬‬
‫‪1,114‬‬ ‫‪1,938.2‬‬
‫‪4,403‬‬
‫‪3,477‬‬
‫‪1,938‬‬
‫‪2021‬‬ ‫‪2022‬‬ ‫‪2023‬‬ ‫‪2021‬‬ ‫‪2022‬‬ ‫‪2023‬‬ ‫‪2021‬‬ ‫‪2022‬‬ ‫‪2023‬‬

‫‪Inv‬‬ ‫)‪Adv.(net‬‬ ‫‪Oth‬‬ ‫‪Deposits‬‬ ‫‪CASA‬‬

‫ݎ‬৙ࢵä޺ࠫßদ2024îþä਍‫܈‬ì਎‫޺ݻ‬150ࢵ50জĕîþ௔ 13.4%dঠࡣ਍îࠂþîⱭ1,631.7ෛäþ‫ݍ‬äîþäࣘैऱ冎দ⏉
߶ৗß⎱‫ݸ‬ßখতࠂþîⱭ8.2Ĝ਍ûऔ‫ݸ‬ẉদ߾਎‫޺ݻ‬250 ෛäþ‫ݍ‬ä঺ࠄ㐻Ĝ਍‫܍‬উৼࣚজ१ࢷäߥধࡹ燖দࠂþîⱭ193.1‫܈‬
ïäᱍ७ࠂþîⱭ3.53߾⢶‫ݸ‬ß涴৬᜾ä १ࢷä䑳48ߥধࡹ ߱ࡹদ ÛðሳäÛܑîߞî७ú⦫çऀ劰‫ݴ‬ęì‫܈‬ïত⏉Ĝ਍îࠂþîⱭ1,398.1
ऱ࢒२वþĜ਍‫܍‬উৼࣚজჭࢀì‫ݼ‬ïত53.6%ߥধࡹঠࡣÛᱫ࣌ࠅॖᾱ⹭ দ2023ࢂ੄७ďï܎Ēߜ‫ނ‬äþ‫ݍ‬ä牄 Ā Ĝߵਉऻ⸶ῦ৬᜾äîþäइäîï
ऱ࢒জçऀ劰ଡ଼äþî߾1%3$LWHPDDGÛῦᘑþîত拂দপäए 䑳7.6ῦė࣐ैúᯈᦌĜ৮î 202254.0% 䑳44.4ῦࠫß
Ĝ਍ᱫöþ࢒߬傻७߾উ޿ੴࢵõầ Ɑ205.32022 ࠂþîⱭ220.8फ़îতüäîþäᱥᱫĒîྎî१ࢷä७
७ܵîজNPL߱ࡹদ‫ݣݫ‬þþ‫ݸ‬ò兗ࠂþîⱭ203.6Ĝᳬਉ ࠂþî
PAT - YoY Reconciliation Ĝ৮îⲠ‫ݸ‬92.2%ࢂ੄
Ɑ3,509.02022 ࠂþîⱭ4,393.9 ‫ݸ‬䔧 Ěî७ߡো࢕ত⏉

PKR Bn
Ɑ3,477.42022 ࠂþîⱭ4,403.4Ḷোত࠾਌î ࠂþî

ǘ
3.9
㨢ত玝୛‫ݍ‬䫌îþäěᕝদê࢒তìࢭîäþä੶‫ٵݮ‬ƬŬ޴äĜᆸ ࠂþî
51.9
îþä◦࿿äඛॖᾱęì‫܈‬ïÛçধßGoP০ࠅদࢥîþ‫ݦ‬ï⏉Û޲₉দ䉫
(15.2) (1.9) (0.2) 51.8
(17.1)
߱ࡹদü☚߸î佴ð፹দìࢭ‫ݸ‬ėߛ‫܋‬ä߹ḭো৊äþ߾উࡼäì‫ݼ‬ìࢭ྾ì
30.4
৭‫܊‬僁ęìࡣ৩দìࢭê࢒Ĝ਍߽ਉḦîîäै‫ݼ‬Ṱॣďîߞ७Ěî७ߡো࢕ö你
߸î佴߹ৗ朠޴ä‫ݸ‬îࣴĚì⎄åᱯতĚî७ߡো࢕Ěî⇳Ûῦçᯆߝতê࢒îþä
PAT’22 NII NFI OPEX Prov. Oth. Tax PAT’23
ě৛ïদࠈþॊ߽ä‫ݼ‬å㯰ìĚî७ߡো࢕䑳93ῦ࠾਍䢐î߀वþ‫ݸ‬
Ĝ਍߹ßῦ
ò㧋ä७ॖᾱ
ࡣᆿࠂþîⱭ3,674.4‫ބ‬ï܎Ēখð܎দ⏉޺2023㹤ì31
ῦ࡟Û਍ቮ܏îþäቮ܏êࣣĚîߞࢵçä‫ݮ‬äদîïôäॊä᪒ä‫ݸ‬ïîলਉ㮛Ēîߟ
㭏ᕈä‫ݻ‬७޶᫺ত⏉ĜᆿࠂþîⱭ2,666.2ῦࠫßদ2022
ঠ∉ࠁধì⫼জïîলਉ㮛ஷäਇĜ∉柭দ߾উ࣌ࠅॖᾱࢵᄱࢵ
‫ބ‬ï܎Ē‫ܛ‬উĜ∉⒙ᕈ86.2%७‫ބ‬ï܎Ēখࡣ਍‫܍‬ßࢵ‫ބ‬ï܎Ē捛
দ⏉îþäôᕟ噹îĚ䥸࿾îÛúࡡোࢲₖĀ䱛ࠄ拂দ⺚äìäত‫ߘݍݓ‬Ēěî⇳
ô劮޴ä⏉Û߱ࡹদ53.6%দ‫ބ‬ï܎Ēখ‫ࠂ܈‬þîⱭ1,970.5
਍匁७෶ïߞ撕îþäᖃ寲ô劮޴äĜ∉ࠁউࢳᩩতû悀ä৉ো
78.8জࢂ੄CASAஷä߾⏉Ĝ਍䡸îîäै‫ݼ‬জ߀वþ‫ݸ‬୛‫ݍ‬䫌
ࢵêࣣᔂäẉদ߾উਇäॊܹਸ਼îäਫ਼܎îþä⼎ῦçৗ޿ࣴ⏉७Đßঠ
ďîߞîߥধࡹðäᆺܵîজ湫ত२‫ݴ‬溁྾ìîþäণìউî७৉োĜḇîîäै‫ݸݼ‬䑳
Ĝ਍î੃
३७ẉদ߾উäîߞজėߘîäì৫í৉োûჃ୻äð܎দ⏉Ĝ਍ᳬĚìῦ
îþäᲯフÛਇ‫܍‬Ĝ⽍‫ࠇ߶ࠆ↊܈‬তñîᛣতॖᾱ༲‫܈‬ßঠḭę‫ࠇݧ‬湫߾Ēîߟ ᱫ⽍঩༜Ēῦ⺚äìäতėߘîäì৫í৉ো྾ì‫܈‬óैᵧ߾ðäîþä∉߀ࡹþ
Ĝ∉߽ਉிआ܏७‫ݽ‬งᆺåäẉদĒîߟÛçä‫ݮ‬ä柨দçধࠅ৬噫྾ì Ĝ਍
ࢽäþ෶ïߞîþä਍‫ࠇ܍‬慓Ě᾽‫ށ‬äì䡶îîäै‫ݼ‬জॖᾱ‫ݸ‬îࣴᬰþÛ޲₉দðä
ÛêࣣðäĜ਍㶐উîप‫ݸ‬ü᩷äদ‫ߘݍݓ‬Ēῦᒆ৛দ໗⏉໗দ߾ਉ 涴৬᜾ä
ęࢌᒣদ2022Ĝ਍‫܍‬উ⽍ñîᛣত‫ߘݍݓ‬Ēᵧẉদ2023úࡹĒîߟ
ॖᾱẉদúࡹ৊äþ߾ਉᓆজ2023㹤ì31໗দ߾਎‫ݻ‬থßজॖᾱ ޴äࢵῦė㴿৊äþ߾উ२‫ࢵݴ‬Ěરî‫ݔ‬äদ⏉î܏þî७७涴৬᜾ä
਍‫܍‬উ‫ݤ‬റত߾উ凸ࢵïä‫ݔ‬ä޿íéîìজ Ɑ140.2ῦࠫßদ2023߿‫܋‬äখদ1%3$LWHPDDGĜ਍
28.2%উĘ‫ࠂࢵݻ‬þîⱭ109.3ῦࠫßদ2022ࡣ᳻ਉࠂþî
ࠂþî呶 2022߾ėߛ‫܋‬ä৊äþ߾᷐খÛ㐻Ĝ∉਍îউĒîྎîჭė‫܈‬Ⴠতߥধࡹ
51,840.5 ॖᾱ⹭ïä໗ẉদúࡹ৊äþ߾ਉᓆজ2023㹤ì31 24.3޺ࠂþîⱭ125.4Ⴝ₰দࠂþîⱭ101.0ῦࠫßদ
ॖᾱধäþ߾ࠇ‫܈‬ধথßęࢌø๑ᦌ ėþìࢭܑîߞî७৊äþྣě‫ݻ‬1%3 $LWHPDDGĜᱫĒîྎî१ࢷäYoY
ǔǔ
172,511.7
(595.3) ⹭ïä໗Ĝ߶ৗßৢࠇ྾ì
౧û澐äîߞ७çऀ劰涴޺‫ނ‬ᫍ৛ߘ‫ٳ‬ǂƺĺîþä‫ބ‬ï܎Ē⻓îউ৊ࢵ
ࢵࡪþতîृęࢌ߶‫܋‬ຒতėߛ‫܋‬äৗࠇ
⹭ïä໗爕ࢵ‫ࠄݩ‬í ࠂþîⱭ113.8ῦࠫßদ2023߾1%3$LWHPDDGĜ਍‫܍‬উ
ৼࣚজ२‫ݴ‬22%ῦႽ₰দࠂþîⱭ93.6ߥধࡹࡣÛᴂõ凨ďï܎Ē‫ݸ‬
181.5
ॖᾱå㯰ìẉদø๑
ďï܎ĒখÛ‫ݸ‬û㒝äদ2023Ĝᆸߥধࡹ27%ჭতCASA㐻Û਍‫܍‬উ
223,938.4
: ø๑
(5,184.0) 爕ῦ‫ࠄݩ‬í߶ߚऴ দĚî射৬᜾äĜ਍‫܍‬উৼࣚ१ࢷäߥধࡹ७12%ঠࡣÛᆿ250,000ᬖîࢸ
218,754.4 ĒîþîवĚᲝ ॖᾱęࢌø๑ᦌ ïþ‫ݓ‬þ涴৬᜾äüäîþìদúࡹ߾⏉޲₉দ䉫㨢୻äẉদ÷þॊ

‫�ل � � آ�� اور د� ا�ا�ت ‪19.5% �� 93.3‬ا�� ‬ ‫� � � �ر�د�‬
‫�� ۔ ا�� و�� ا�ا�ت � � آ�� ا�ا�ت � ��ً ‪�60.4‬‬
‫� �‪ � ،‬ر� ‪ �56.4‬رو� � � ‪ �48.8 �2022‬رو� �‬ ‫�ز�ر ا�دي ��ل‪� � ،‬ح �د � ��ل‪ ،‬اور �� ‬
‫�� ‪ �15.5‬ز�ده �۔ ‪ �7.6‬رو� � ا�� دي �ر � ‪�3.56‬‬ ‫ا��ي � ‪ �2023‬دوران �� ط �� د � �‪� ،‬‬
‫رو� � � ��ه � �� ا�ؤ� � ا�� و� �ا۔‬ ‫� ا��ں اور ڈ�ز� � ا�� ۔‬
‫� ا� �رو�ري ا�� ي اور د� �ل � �� ز �� ‪ ،‬ا�‬ ‫��‪ ،‬ا� ��ري ��ز � ار�ز � �و� �ا � � � ا��ں � ‪� �42%‬۔‬
‫ا�ادي �ت اور �ر� � �م � ا� �ظ اور � � ��ل �ا� �� ۔ اس‬ ‫اس � �� ر � ��ٹ � �ر � � ر� � اور ‪ �2024‬و� ��‬
‫�ل � � ا� �رو�ري ا�� اور د� �ل � ‪ �1.5‬رو�‬ ‫��ل��ں�ان��ر�ن�و��را‬
‫�چ �۔ �� ر � ��اد � � ا�ا�ت ‪ �12.2‬رو� �‪� � ،‬‬ ‫دے �۔ � ڈي � � �‪ ،‬ا�اط زر اور �ح �د � � رو� � � � و� � �ض‬
‫�ل � �� ‪13.7%‬ز�ده �۔ �� ا�ر� �� ا� ا��‬ ‫� � � �ي آ� �۔�ل � � �� ‪ �� 2023‬ر� � ‪�22%‬‬
‫ا�اف � ��ل � � � � � ا� �‪ ،‬اس � � ا� �دي �‬ ‫��ار ر� �۔ �ر� � �� ر� ‪ �2024‬آ� � �� ‬
‫� �‬
‫ا� �‪ ،�� ،‬اور ا� � � � � � اپ �� ري ��‬ ‫� �� ‪� � � ،‬ض � �� آ� � اور ��ٹ � ذر� �� ‬
‫ر��۔ ‪ �2.8 � � ،�2023‬رو� �� و� � د� �ل � اور‬ ‫� �ر�ر� � � � �� ۔‬
‫‪ �0.9‬رو� � ورك � �� چ �۔ � �ؤ � �ف � � �‬
‫� � د�� دا�ا� � � � ��‪ �14.5 ،‬رو�‬ ‫ا��ا�ت�� ‪�01‬ري ‪��IFRS9�2024‬ه�۔اس‬
‫�ف � � �‪ �13.4 � � � ،‬رو� ا�وا� � � )ز�ده � �‬ ‫��)‪��(i‬ده��ا��ں�ا��ذر�‪،‬ا��ر�وو�ن��ا�‪،‬اور)‪(ii‬‬
‫�ں � د�ؤ � � ��ٹ � �ات � � �وا� � ر� � (اور‬ ‫ا��ں��ب��ر��ر��وا�ا�دي��ٹ��‪��،‬‬
‫�ري�دو�رهدر��ي��۔��ا��ا�ت��‪�،‬ں�‬
‫‪ �0.5‬رو� �� ري � �رے � ��ت �۔ �ً‪�� ،‬‬
‫��ےا��۔‬
‫‪ �101.3‬رو� ر� � � � �ل � ‪ �62.7‬رو� �‪61.4%‬ز�ده‬
‫�۔‪� � � ��48.8%‬ح)‪ �� (2022:51.5%‬اس �ل �‬
‫� � �رج ‪ �49.4‬رو� � �ً � � � از � �� ‪�51.8‬‬
‫‪�� 2023‬ط�� ر�د�‬
‫رو� � � �ا � � �ل � ‪ �30.4‬رو� � ‪70.5%‬ز�ده �۔‬ ‫�� ‬
‫� �� ل � �و�د‪31 � � ،‬د� ‪ �� 2023‬وا� �ل‬
‫� � �ط �� ۔ ز� ��ه �ل � �‪�51.8� � ،‬‬
‫��ي‬ ‫رو� � � از � �� ر�رڈ � �۔‬
‫��)اربرو�(‬
‫�ل � آ� � � � � ا�� ‪ �6,652.7‬رو� � � �� ‬ ‫�ي‪)/‬ا�ي(‬ ‫��ر�د�‬
‫‪ �2022‬آ�� ‪ �5,240.4‬رو� �‪�� 26.9%‬ں ا�� ‬
‫‪2022‬‬ ‫‪2023‬‬
‫‪44.4%‬‬ ‫‪51.9‬‬ ‫‪116.8‬‬ ‫‪168.7‬‬ ‫��ديآ��‬
‫�� ۔�� اور ر�رو ‪ �2022‬آ� �‪ �300.8‬رو� � ��‬

‫‪10.7%‬‬ ‫‪3.9‬‬ ‫‪36.7‬‬ ‫‪40.6‬‬ ‫��ڈآ��‬
‫‪36.4%‬‬ ‫‪55.8‬‬ ‫‪153.5‬‬ ‫‪209.3‬‬ ‫�آ��‬
‫� ‪ �81.9‬رو� � ‪ �27.2%‬ا�� ‪31‬د� ‪�2023‬‬

‫‪19.5%‬‬ ‫)‪(15.2‬‬ ‫‪78.1‬‬ ‫‪93.3‬‬ ‫ا��ا�ا�ت‬
‫‪53.6%‬‬ ‫‪40.4‬‬ ‫‪75.3‬‬ ‫‪115.7‬‬ ‫�از�ف��‬
‫‪ �382.8‬رو� ر�۔‬
‫‪14.8%‬‬ ‫)‪(1.9‬‬ ‫‪12.6‬‬ ‫‪14.5‬‬ ‫��ت‬
‫‪61.4%‬‬ ‫‪38.5‬‬ ‫‪62.7‬‬ ‫‪101.3‬‬ ‫�از��‬
‫‪52.9%‬‬ ‫)‪(17.1‬‬ ‫‪32.3‬‬ ‫‪49.4‬‬ ‫�‬
‫‪70.5%‬‬ ‫‪21.4‬‬ ‫‪30.4‬‬ ‫‪51.8‬‬ ‫�از��‬
‫‪70.5%‬‬ ‫‪10.07‬‬ ‫‪14.29‬‬ ‫‪24.37‬‬ ‫��آ�� )رو�(‬
‫)اربرو�(‬ ‫��او��ں��د��ا��ں��ظ��ي��‬
‫�ي‬ ‫��ں�و‬ ‫�‬ ‫��‪�1,024.7 ��،‬رو��ديآ��ا��ل‬
‫� ‪�503.3‬رو��د��ز�ده�۔ا��ح‪�،‬د‪�/‬ركاپا�ا�ت‬
‫‪2022‬‬ ‫‪2023‬‬
‫‪26.6%‬‬ ‫‪3,477.4‬‬ ‫‪4,403.4‬‬ ‫��ري‪� -‬‬ ‫‪1‬‬
‫‪13.6%‬‬ ‫‪1,230.5‬‬ ‫‪1,398.1‬‬ ‫ا�وا�‪� -‬‬ ‫‪2‬‬
‫‪�855.9‬رو��‪�365.1 ��،‬رو�� ‪��43%‬ن�ادا‬
‫�رو��ل‬ ‫��۔�ً‪��،‬د‪�/‬ركاپآ�� ‪168.7‬‬
‫�ا��‬
‫�� ‬
‫‪26.9%‬‬ ‫‪5,240.4‬‬ ‫‪6,652.7‬‬ ‫‪3‬‬
‫� ‪44.4%‬ز�ده�۔�ل�دورانا� �� ر��رو�ري��ل��و�د‬

‫‪37.8%‬‬ ‫‪2,666.2‬‬ ‫‪3,674.4‬‬ ‫ڈ�ز�‬ ‫‪4‬‬
‫‪12.2%‬‬ ‫‪1,940.5‬‬ ‫‪2,177.7‬‬ ‫��ت‬ ‫‪5‬‬
‫‪27.2%‬‬ ‫‪300.8‬‬ ‫‪382.8‬‬ ‫�ا��‬ ‫‪6‬‬
‫��ا��ن�ركاپ‪�/‬د''‪�''NFI‬آ��‪10.7%‬ا��‬
‫�ل� ‪�36.7‬رو�� ‪�3.9‬رو��ا�� ‪�40.6‬‬
‫‪27.2%‬‬ ‫‪141.4‬‬ ‫‪179.9‬‬ ‫��اپ��‬ ‫‪7‬‬
‫�ا��ريا��‬
‫رو�ر�۔اس�ح��ر��ل‪�153.5 �2022‬رو��‬
‫‪28.2%‬‬ ‫‪109.3‬‬ ‫‪140.2‬‬ ‫‪8‬‬
‫�� ‪�36.4%‬ا�� ‪�209.3‬رو�ر�۔‬

‫ڈا��ز��رز�ر�رٹ‬
‫ا�ادي �� ارے‬
‫�م � ��رز‬
‫ا�اط زر ز�ده �ل � � وا� آ�� ا� � � � ا�اط زر � � � � � �ا��‬ ‫� �رڈ آف ڈا��ز � �� ‪31 ،‬د�‪ �� 2023‬وا� �ت �‬
‫� �ف � ا�� زه �� دور � �� ر� ��‪�� ،‬ي � � ‪23%‬‬ ‫� � � �� ر�رٹ ‪31‬د� ‪ �2023‬آڈٹ �ه �� ارے اور اس‬
‫�‪� � � � �25 %‬ي � � ۔ � �ط �و �� اور �� ا��ت‬ ‫��د�ر آڈ�ز � ر�رٹ آپ � �� س � ر� �۔‬
‫� �ذ � ا�ر� ��‪ �� ،‬ا� � � � �ف � وا� آ� اور و� �� ‬ ‫ا�ؤ� � �� ار ر� � � اور � �� ارے � � ��‪ ،‬اس‬
‫� � �� ر� �۔‬ ‫� آ�� ‪ � � ،‬اور �ل � دوران ا�� آ� وا� ��ں �� ر‬
‫� � �� ۔‬
‫آ� ا� ا� �و�ام اور د� دو �� ا��ت � � ��ن � �ر�د� �� ل‬
‫‪��2023-22‬ں �ں � � �ر� � ا�د اور �ح �د� � ا�م‬ ‫آ�� ‬
‫�ا� � ر� �۔��ن � � �� زر�د� � ذ�� ‪�29‬ري ‪� �2024‬ھ �‬
‫‪ �13.2‬ڈا� ��‪ ،‬ا� � � � ذ�� ‪ �8.2‬ڈا� اور �ر� �ں � ذ��‬ ‫�� ‪� �� ،‬وي �ر �� ر� �۔ � � �‪� ��،‬‬
‫‪ �5.0‬ڈا� � ر�‪� � ،‬د� � �ح �ے �� ۔ �� ل ‪2024‬‬ ‫��روي�ر�ن��اور��دآز��‬
‫� �� ا�ؤ� �ره �ھ � � ڈي � � ��ً ‪� �� 1.5‬‬ ‫� � �� ض د� � �ود � �ں � ا�ات � �� ۔‬
‫�� ر�ري � � �ري �۔�� ذ �‪ ،‬آ�� ا�ا �ر�د� � �و�د‪ ،‬ه �رك‬ ‫� ‪�COVID-19‬و��ا��د�ؤآ�آ��ا�‪��،‬ر�ر��‬
‫ا�اف�او��اور��‬ ‫�زك�‪،‬ز�ده��ں�ا�اطزر��ي��‬
‫اپ � ز�ده ا�ا�ت � و� �‪ ،‬ا�ا�ت � �ف د�ؤ � ر� �۔ ��‪� � ،‬دي‬ ‫�� ‬
‫ا�ا�ت � �ول �� ا�ا�ت �دي �� د � ر�‬ ‫�ںاور��ر��ت ��ر�۔��ں‬
‫�ا�اطزر�ر�ن�ا��ا�۔‬
‫�۔ �� ره � ڈي � � ‪� � �2.3‬ھ � �‪ � �� ،‬د�‬
‫�� ل ‪ �2024‬دوران �دي �� ڈي � � ‪� � � �1.7‬ا �۔‬
‫آ��‪��،‬ز�ده�ي�ا�اطزر�ا�ال�آ�ر��ت�‬
‫��ت � و�� ‪ � �46‬ا�� د� �‪� � � ،‬ن � و�� ‪� �100‬‬
‫��اور��ات�و��ازن��۔��‬
‫زا� ا�� ا � � � ��ت � ‪ �30‬ا�� ا۔ ا�� ا�ٰ �رك اپ‬
‫�ں��ر�ن��و�اس��وغ��ز�ده�‬
‫ادا�ں � � �ري �‪� �� ،‬ل‪ �2024‬آ� � ��ار �� ں � �‬
‫�ے ��ي � � � ا� � دور � ا�م � � � � � �وج � �� ۔‬
‫�� ري � ا�ا�ت � � درآ� � � ر� �۔‬
‫ور� � � �ل � � ‪� �� 2024‬ح � ‪ �3.1‬اور ‪3.2 �2025‬‬
‫�� ‬ ‫�� ‬
‫�‬ ‫� �� ‬ ‫�‬ ‫� �� ‬ ‫� ر� � ا�ازه �� ‪� �، �� 2024 ،‬ي �ں اور ��‬
‫��ن ا�ك ا �۔�ا� ا �ك ا � ‪100‬ا�� ‪ �2023،‬ا� � ��ں‬
‫�� ں � �� ز�ده � � و� � �ح � ا�� ‪� �2023‬ں �‬
‫��ر�د��ه��‪��60 ،‬ز�دها��۔‪2023‬‬ ‫��ں� ��‬
‫�‬ ‫� �� ‬ ‫‪ �0.2‬ز�ده ) ‪� �2000-2019‬ر� او� � �(� ۔‬
‫ا�ك ا � )‪� � �� (PSX‬ل � �ر � ا�ا �� ا� ا‬ ‫��ن �‬ ‫��‬
‫�‬ ‫� �� ‬
‫�ك ا � ‪100‬ا�� ں � � � اور � � �� ر�د� � ��ه‬ ‫��ن � �‪� �� :‬ل ‪�� ،� � � � �2024‬ت � �ر�‬
‫� � ‪�12‬ه��ت�)رو��ظ�(‬ ‫��وا�ا��س��ر�ا�ا‪��،‬‬ ‫�ي آ� � � � و� � � �� ل ‪�� 2023‬‬
‫�‬ ‫� �� ‬
‫��ً ‪ � �� 55%‬۔�ا� ا �ك ا � ‪100‬ا�� ر �ل‪� 2023‬‬ ‫��ں � دو�ره اس � ا�� ل ‪� � �20 24‬‬
‫‪�22,031‬ا� � ��ً ‪ �55%‬ا�� ‪�� 62,451.04‬۔‬ ‫� � � ڈي � � � ‪ � �2.1‬او� � �ي آ� �‪ � � ،‬دو�ے �‬
‫�� ذ � وا� �� اور � � �� ‪� ،‬رو�ري ا�د‬ ‫� � اور اس � � � �� ت �۔ ‪� ،�2023‬م � ا��‪،‬‬
‫اور �� ري � ��ل � �ر� �ي � �� ۔‬ ‫� اور �ر� � � �ں � ا�ا�ت � �� ا�ا�ت �۔‬
‫� �� ا� � � اس �ت � � �� ار ر� �‬

PROFILE OF
SHARIAH BOARD
Mufti Ehsan Waquar
Chairman Shariah Board
Mufti Ehsan has a diversified cross-functional Administration (MBA) with specialization in Finance
management experience in Islamic Finance, Business and Masters in Economics (MA) from IoBM and Karachi
Management and Operations, Project Management University respectively. He also completed traditional
and Administration for more than two decades. He Islamic studies and graduated as a Mufti, achieving
has hands-on experience of people and projects Masters in Islamic Studies (MA) and specializing in
management, with a rich experience of working Islamic Jurisprudence (PGD-Mufti) from a leading
with board of directors and senior management Islamic School in Pakistan, Jamia-Tur-Rasheed. He has
of banks, regulators, auditors and legal counsels. also accomplished Bachelors in Law and Legislation
(LLB). This unique blend of educational combination
Alhamdulillah, he exclusively serves Islamic Financial gives him an edge upon many others to understand,
Industry with institutions like World Bank-IFC, correlate and align modern day banking practices
National Bank of Pakistan, ABL, Soneri Bank, NAFA, with Shariah principles. Beside this, he conducts
Askari General Insurance Company Takaful Window courses and sessions on Islamic Banking, Capital
(AGICO), Emirates Global Islamic Bank, Al Baraka Markets, Derivatives, Takaful and Risk Management in
Bank Pakistan, UBL, Yasaar Ltd.-UAE & UK, Minhaj renowned Business schools like CBM, IBA and KUBS.
Advisory-UAE, Arif Habib for more than a decade now.
He also serves as Member Shariah Advisory Committee Dr. Mufti Khalil Aazami
(SAC) at Security Exchange Commission of Pakistan Shariah Board Member
(SECP). He has structured several Sukuk including
the largest Sukuk in Pakistan; a hundred billion Sukuk Dr. Aazami graduated from Jamia Darul Uloom,
for Neelum Jhelum Hydro Power, Fatima Fertilizer, Karachi. He obtained Shahadat-ul-Aalamia (Masters
Fauji Fertilizer, Sitara Energy, Sitara Peroxide and IBL. in Arabic and Islamic Studies) and Al-T’akhas-us-
fil-Iftaa’ (Specialisation in Islamic Jurisprudence
He also served as member of the Technical Committee and Fatwa) from Jamia Darul Uloom, Karachi and
for Developing Accounting & Auditing Standards for holds a Doctorate degree in ‘Islamic Jurisprudence’
Islamic Financial Institution at Institute of Chartered from Karachi University. He is also serving as
Accountants of Pakistan (ICAP). As member of SAF at a Chairman Shariah Board of Bank-Alfalah,
State Bank of Pakistan (SBP), he worked actively with Member Shariah Board of Faisal Bank and Shariah
SBP in matters pertaining to Islamic Banks including Advisor of Alfalah Insurance Window Takaful.
Tawarruq, Commodity Murabahah, Treasury, Trade
Finance, Agricultural Financing Products and drafting Dr. Aazami has 24 years of research experience
of Shariah Standard on Shirkat-ul-Milk usually used for related to Islamic Finance and other Shariah related
Housing Finance. At ESAAC (Ehsan Shariah Advisors subjects. He is an author of numerous publications.
and Consultants Private Limited), where he is the He is also an experienced lecturer and trainer in the
Chief Executive Officer and has the privilege to work field of Islamic Finance, Economics, Fiqh, Islamic
on a project of World Bank-IFC for developing Islamic Financial Laws and General Islamic Science. He is
Re-Mortgage Finance. He has also worked with SECP involved as Faculty member, – Jamia Darul Uloom,
team on Takaful Rules 2012 with its insurance division. Karachi since 1999 and has been associated with
the Centre for Islamic Economics, Karachi, National
He possesses a unique combination of religious Institute of Banking and Finance – SBP and Sheikh
and contemporary education that is very relevant to Zaid Islamic Research Centre – University of Karachi.
Islamic Banking. He has strong communication skills
combined with knowledge of several languages. He
graduated and accomplished Masters in Business

Mufti Muhammad Imran of the Tier 2 Mudarabah Sukuk issued by Meezan
Resident Shariah Board Member Bank Limited.
Mufti Muhammad Imran, working with NBP since He also has 8 years’ working experience with leading
May 2016, is a qualified Shariah Scholar and Auditing firms like A.F.F (PWC) & Deloitte Pakistan, as
experienced Islamic banker with knowledge of Islamic a Shariah Consultant & Head of Shariah Audit and has
banking & finance. His educational qualification supervised various Shariah Audits of renowned Islamic
includes Takhas-us-fil-Fiqh, MIBF & PGD (Islamic Banks, Takaful Companies and Sukuks under the
Banking & Finance) and M.A (Islamic Studies) and audit firm’s umbrella. He knows the practical problems
he has been associated with different Research, being faced by the Islamic Financial Institution.
Fatawa and Educational Institutions since 2003
and has over 13 years of banking, Islamic Banking He is a teacher of Hadith and Fiqh (Islamic Jurisprudence)
Trainings, Shariah Compliance, review & product at Jamia Dar-ul-Uloom, Karachi besides teaching in
development experience. His research includes: various leading Islamic educational institutions like
IBA CEIF & Center for Islamic Economic since 2011.
• Qard & Dain me Farq Al Taeyseer fee
Hukm-e-Al Tasweer
• Ahkam-ul-Zakah
• Asshya-e-sittah Mufti Muhammad Ahmed Khan
Shariah Board Member
• Shoroot-e-Ayemmah Khamsah
• Shoroot-e-Ayemmah Sittah Mufti Muhammad Ahmad is a qualified CSAA
(Certified Shariah Advisor & Auditor) from AAOIFI
• Preference Shares – A Shariah Compliant
(Accounting and Auditing Organization for Islamic
Malaysian Model
Financial Institutions, Bahrain), Takhas-us-fil-Fiqh
il Muamalat Almaliyyah (Specialization in Islamic
Commercial Jurisprudence and Fatwa) from Jamia Tur
Mufti Sajjad Ashraf Usmani Rasheed, Dars-e-Nizami/Shahadat-ul-Aalamia from
Shariah Board Member
Wifaq ul Madaris Alarabia and Masters in Economics
from University of Karachi. He also holds a Ph. D in
Mufti Sajjad Usmani is a qualified CSAA (Certified
Islamic Banking and Finance from Karachi University.
Shariah Advisor & Auditor) from AAOIFI (Accounting and
Auditing Organization for Islamic Financial Institutions,
He has more than seven years’ experience of
Bahrain), Takhas-us-Fil-Ifta (Specialization in Islamic
working in Islamic Banking Industry and has
Jurisprudence and Fatwa) and Dars-e-Nizami/
contributed extensively by actively participating
Shahadat-ul-Aalamia from Jamia Dar-ul-Uloom,
Shariah deliberations on multiples issues. He
Karachi and a certified anatomist of Sukuk, Islamic
has about ten years’ experience of Teaching,
Banking & Finance. He is a seasoned professional
research and giving Fatawa. He has written about
with over 14 & 10 years of working experience from
three hundred fatawas regarding ibadat, trade,
writing Fatawa to serving as a Shariah Advisor of the
banking, finance, inheritance, marriage, divorce etc.
leading financial institutions of Pakistan respectively.
He has also conducted in-depth research of
several practical issues in Islamic Banking
He has blend experience of providing Shariah
from Shariah aspect. He has a vast experience
consultancy to three (3) Takaful Companies as Shariah
of conducting Islamic Banking Trainings.
Advisor since 2015 and also served as Shariah Advisor
He also teaches Islamic Jurisprudence and
Islamic creed at Alburhan Institute Islamabad.

SHARIAH BOARD’S
ANNUAL REPORT
NBP AITEMAAD - 2023
‫ﺑﺴﻢ اﻟﻠﻪ اﻟﺮﺣﻤﻦ اﻟﺮﺣﻴﻢ‬
‫اﻟﺤﻤﺪﻟﻠﻪ رب اﻟﻌﺎﳌني واﻟﺼﻼة واﻟﺴﻼم ﻋﲆ ﺳﻴﺪاﻻﻧﺒﻴﺎء واﳌﺮﺳﻠني وﻋﲆ أﻟﻪ وﺻﺤﺒﻪ اﺟﻤﻌني اﻣﺎ ﺑﻌﺪ‬
The Board of Directors (BoD) of National Bank of 2. Compliance with Shariah related
Pakistan (NBP) have entrusted the Shariah Board regulatory directives issued by State
(SB) with the task to assess the overall Shariah Bank of Pakistan (SBP)
compliance level and environment within NBP
Aitemaad Islamic Banking. The objective of the The management ensures zero tolerance
report is to present a view about the overall Shariah for instances of Shariah non-compliance
compliance level and environment within NBP in accordance with SBP directives. To
Aitemaad Islamic Banking. underscore this commitment, NBP Aitemaad
has incorporated a dedicated Shariah Non-
In our role as the Shariah Board, we have Compliance key performance indicator within
assessed the overall Shariah compliance level the staff appraisal system.
and environment within the NBP Aitemaad Islamic
Banking as of December 31, 2023. 3. Shariah Compliance Mechanism
Shariah Board Opinion ‫ﺳﺒﺤﺎﻧﻪ وﺗﻌﺎﱃ اﻋﻠﻢ‬Alhamdulillah,
‫واﻟﻠﻪ‬ NBP-Aitemaad Islamic Banking
already had a comprehensive Shariah
‫ﻋﻠﻴﻨﺎ‬Management
While BoD and Executive ‫رﺑﻨﺎ وﻻ ﺗﺤﻤﻞ‬ ‫ﻧﺴﻴﻨﺎ او اﺧﻄﺎﻧﺎ ج‬
are solely ‫ﺗﺆاﺧﺬﻧﺎ ان‬
Compliance ‫ ﻻ‬and
Policy ‫رﺑﻨﺎ‬extensive checklist for
responsible to ensure that the operations of NBP Shariah compliance review of the transactions in
‫ﻃﺎﻗﺔﻟﻨﺎﺑﻪ ج‬
–Aitemaad Islamic Banking‫ﻻ‬are
‫ ﻣﺎ‬conducted
‫وﻻ ﺗﺤﻤﻠﻨﺎ‬in‫رﺑﻨﺎ‬a ‫ ﻣﻦ ﻗﺒﻠﻨﺎ ج‬line
‫اﻟﺬﻳﻦ‬
with‫ﻋﲆ‬ ‫ﺣﻤﻠﺘﻪ‬
Shariah ‫اﴏا ﻛام‬
principles.
manner that comply with Shariah principles at all
‫اﻟﻜﻔﺮﻳﻦ‬
times, we are required‫اﻟﻘﻮم‬ ‫ﻋﲆ‬a ‫ﻓﺎﻧﴫﻧﺎ‬
to submit report on‫ﻣﻮﻟﻨﺎ‬
the ‫وارﺣﻤﻨﺎ وﻗﻔﻪ اﻧﺖ‬ ‫واﻏﻔﺮﻟﻨﺎ‬
‫وﻗﻔﻪ‬the
This year, SCD has ‫ﻋﻨﺎ وﻗﻔﻪ‬ ‫واﻋﻒ‬the mechanism
revisited
overall Shariah compliance environment of NBP – and refined the policy and manual based on the
Aitemaad Islamic Banking. past experiences and feedback of SCD’s field
functionaries.
To form our opinion as expressed in this report,
the Shariah Compliance Department of the bank 4. Mechanism ensuring prohibited
carried out reviews, on test check basis, of each Income to Charity Account
class of transactions, the relevant documentation
and process flows. Further, we have also reviewed NBP-Aitemaad Islamic Banking has a well-
the reports of the internal Shariah audit and external defined charity policy and charity manual
Shariah audit. Based on above, we are of the view approved by NBP Shariah Board and BoD.
that: Shariah Compliance review and Internal
Shariah Audit specifically covered financing
1. Compliance with Directives issued by transactions, while also extending to other
Shariah Board revenue generating sources, such as
investments and treasury transactions.
NBP Aitemaad’s overall environment, products,
and agreements comply with the Shariah During the Shariah Review of financing portfolio,
directives issued by Shariah Board. no transaction was classified for charity.
While, during the year, rupees nine million, 7. Promotion and Awareness of Islamic Banking
sixty-six thousand, six hundred fifty (9,066,650) and Finance and other activities
was collected on account of late payments and
deposited in the Charity Account. SCD in coordination with AIBG operations
and marketing has initiated Islamic Banking
awareness sessions for the promotion of Islamic
Charity Fund – 2023 Rupees in ‘000
Banking for general public. In this regard, total
Opening Balance 202.51 seven (7) awareness sessions were organized all
Received from customers on 9,066.65 over country.
account of delayed payment
(2023) Apart from customer awareness sessions, SCD
Profit Paid During the year on 99.36 has also started giving guest lectures on Islamic
Charity Accounts Banking and Finance in different Universities
and Madaris.
Payments/utilization during 3000
the period
Other Awareness Activities:
Closing Balance 6,368.52
Ramadan Awareness Sessions: SCD organised
online Ramadan awareness sessions covering
5. Profit and Loss Distribution and Pool various topics related to Ramadan for both
Management employees and customers. Distinguished
speakers from the esteemed Shariah Board
NBP Aitemaad Islamic Banking Pool members who contributed to these sessions.
Management Wing is staffed with adequate This initiative received a promising number of
human resource ensuring compliance with views across various social media platforms,
the SBP and Shariah Board guidelines. The reflecting its positive impact and engagement.
SCD undertakes a monthly review of profit and
loss calculation prior to distribution among In addition, the Shariah Compliance Department
depositors, complimented by an annual Shariah (SCD), in collaboration with the Aitemaad
compliance review of pool management. Further, Islamic Banking Group (AIBG), organised
Internal Shariah audit wing conducts a Shariah thought-provoking webinars for all NBP staff.
Audit of pool management on quarterly basis. These sessions centered on ethical banking
These multiple layers of control have significantly practices, drawing insights from the Quran and
reinforced the process of profit & loss distribution Hadith, with the objective of enhancing ethical
and overall pool management. banking practices within the bank.
6. Staff and Customer understanding of 8. Provision of adequate resources to Shariah

Islamic Banking and Finance Compliance Department (SCD)
The Bank has arranged Ninety-one (91) in house SCD, in order to operate with reasonable head
training sessions on different topics of Islamic counts, has initiated requisition request for
Banking’s basic concepts, products and services, staff hiring. As part of this, one Shariah Scholar
and customer services where One Thousand Two has joined SCD during the year. Additionally,
Hundred and Thirty-Three (1,233) staff (including the hiring process for two more SCD staff is
IBB staff and conventional staff designated to IBW) currently underway. SCD shall anticipate the
were trained during the year. requirement of staff in the department for future
windows operations and conversion and shall
For addressing public queries related to Shariah inform the management with the same.
and Islamic Banking, the Bank is managing an “ask
Shariah” portal i.e. askshariah@nbp.com.pk. The 9. Other Developments
Portal serves as a platform for staffs’ on job training
and guidance on their day-to-day operations i. Shariah Compliance Review (SCR) of
and awareness of customer in the field of Islamic Islamic Banking Branches and Departments
Banking.
The Shariah Compliance Department has
conducted review of 28 deposit branches,
46 Islamic Banking Windows (IBW),

treasury transactions, pool management and vi. Shariah Board Meetings
financing portfolio, on sample basis, during
the calendar year. SCD has also reviewed SB has conducted four (04) meetings during
the different marketing campaigns to the year. Major SB approvals are
ensure strict adherence with Shariah Board summarized as below;
guidelines.
ii. Branch Network & Expansion • Shariah Compliance Policy and Manual
• Aitmaad Hamsafar Auto Finance Policy and

Alhamdulillah! The branch network of NBP
Manual (version 3.0)
Aitemaad stands at 188 dedicated Islamic
banking branches and 150 Islamic Banking • Marketing Manual
Windows (IBW). NBP has initiated the
process to convert 50 conventional branches • Deposit Products Manual – Revision
into Islamic and to open new 100 IBWs for
the year 2024. • Prime Minister’s Youth Business and
Agriculture Finance Scheme (PMYBAF) –
iii. Product Development Manual
• Profit Subsidy and Risk Sharing Scheme for

Alhamdulillah! NBP Aitemaad has a
Farm Mechanization (PSRSSFM) – Manual
diversified range of products as it offers
Seventeen (17) Deposit products, Nine (09) • Conversion Plan of NBP branches 2024
Financing products including Running
Musharakah which was launched during the • IBWs Expansion Plan 2024
year with PKR 30 Billion disbursement. The
Bank remains committed to provide 24/7 • ISAW Annual Plan 2024 and SCD
banking services for various market Annual Plan 2023
segments.
• Standard Legal Documents of Financing
Products
iv. Asset Review
• Standard Security Documents
The overall earning assets of NBP Aitemaad
have increased by 25% amounting • Conventional Products Mapping with
PKR 126.3 Billion in comparison with Islamic Modes
PKR 101.1 Billion of previous year. Total
Financing has reached at PKR 74.6 Billion • Revision of SCR & ISAW Checklist of IBWs
with an increase of 58.8% maintaining NBP
• Alternate for Takaful Waiver
Aitemaad’s Finance to Deposit Ratio
rounded to 65%. Total Investments • Corrective Actions on SCD, ISAW & External
including Bai Muajjal stood at PKR 51.7 Shariah Audit Reports
Billion in comparison with PKR 54.1 Billion
preceding year with a decrease of • Comments on Shariah Standards
4.3%. submitted to SBP
v. Liability Review
Aitemaad total deposits have increased by

21.6% to PKR 113.8 Billion in comparison
with PKR 93.6 Billion last year.

Recommendations
We recommend the Bank on the following matters:
1. The Bank has automated the liability side of 2. Bank has implemented Shariah Compliant
the Core Banking whereas the asset side will Staff Financing Policy (Housing Module) with
be automated with CBA upgrade. This process limited features, we recommend to implement
needs to be prioritized in the execution. all remaining modules, along with Staff Auto
Finance
‫واﻟﻠﻪ ﺳﺒﺤﺎﻧﻪ وﺗﻌﺎﱃ اﻋﻠﻢ‬

‫رﺑﻨﺎ ﻻ ﺗﺆاﺧﺬﻧﺎ ان ﻧﺴﻴﻨﺎ او اﺧﻄﺎﻧﺎ ج رﺑﻨﺎ وﻻ ﺗﺤﻤﻞ ﻋﻠﻴﻨﺎ‬
‫اﴏا ﻛام ﺣﻤﻠﺘﻪ ﻋﲆ اﻟﺬﻳﻦ ﻣﻦ ﻗﺒﻠﻨﺎ ج رﺑﻨﺎ وﻻ ﺗﺤﻤﻠﻨﺎ ﻣﺎ ﻻ ﻃﺎﻗﺔﻟﻨﺎﺑﻪ ج‬
‫واﻋﻒ ﻋﻨﺎوﻗﻔﻪ واﻏﻔﺮﻟﻨﺎ وﻗﻔﻪ وارﺣﻤﻨﺎ وﻗﻔﻪ اﻧﺖ ﻣﻮﻟﻨﺎ ﻓﺎﻧﴫﻧﺎ ﻋﲆ اﻟﻘﻮم اﻟﻜﻔﺮﻳﻦ‬
May Almighty ALLAH grant us guidance to steadfastly adhere to Shariah principles in day-to-day
operations, to absolve our mistakes and shortcomings, and may His blessings lead to the success of
Islamic banking in Pakistan. Ameen.
MUFTI MUHAMMAD AHMED KHAN MUFTI MUHAMMAD SAJJAD USMANI

Member Shariah Board Member Shariah Board
MUFTI MUHAMMAD IMRAN DR. MUFTI KHALIL AHMAD AAZAMI

Resident Shariah Board Member Member Shariah Board
MUFTI EHSAN WAQUAR AHMAD

Member Shariah Board

‫واﻟﻠﻪ ﺳﺒﺤﺎﻧﻪ وﺗﻌﺎﱃ اﻋﻠﻢ‬
‫رﺑﻨﺎ ﻻ ﺗﺆاﺧﺬﻧﺎ ان ﻧﺴﻴﻨﺎ او اﺧﻄﺎﻧﺎ ج رﺑﻨﺎ وﻻ ﺗﺤﻤﻞ ﻋﻠﻴﻨﺎ‬
‫اﴏا ﻛام ﺣﻤﻠﺘﻪ ﻋﲆ اﻟﺬﻳﻦ ﻣﻦ ﻗﺒﻠﻨﺎ ج رﺑﻨﺎ وﻻ ﺗﺤﻤﻠﻨﺎ ﻣﺎ ﻻ ﻃﺎﻗﺔﻟﻨﺎﺑﻪ ج‬
‫واﻋﻒ ﻋﻨﺎوﻗﻔﻪ واﻏﻔﺮﻟﻨﺎ وﻗﻔﻪ وارﺣﻤﻨﺎ وﻗﻔﻪ اﻧﺖ ﻣﻮﻟﻨﺎ ﻓﺎﻧﴫﻧﺎ ﻋﲆ اﻟﻘﻮم اﻟﻜﻔﺮﻳﻦ‬
‫� ا� �� ر د� � � � وه روز�ه ا�ر � � ر�� اور �� ؤں اور ��ں � � � اور� � ا� ��‬
‫� � � ا�� ري ��ن � �� ۔ آ�‬
‫��ا��ن‬ ‫��د��‬
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‫ا��ا�د‬ ‫ا��ا�د‬
‫ﻣﻔﺘﯽ اﺣﺴﺎن وﻗﺎر اﺣﻤﺪ‬

‫ﭼﯿﺮﻣﯿﻦ ﴍﯾﻌﮧ ﺑﻮرڈ‬
‫اﯾﻦ ﺑﯽ ﭘﯽ اﻋﺘامد‬

‫‪�� (ISAW)-‬‬ ‫‪iii‬۔ ��ت �زي )�اڈ� ڈ��(‬
‫‪�� -‬ت � ا�رڈ�� د�و�ات‬
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‫‪-‬ا�رڈ ��ر� د�و�ات‬ ‫ا� � !ا� � � ا�د � �س � ا�اع � ��ت ��د �‪17 � � � ،‬‬
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‫‪-‬روا� ��ت � ا�� دل‬
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‫و�وز آ��اور �ا� � �� ورت � ا�ازه � � ا��‬
‫� آ�ه �ے �۔‬ ‫� � � اور �ر� � �ا�ت � �اب د� � � ا� �ر�‬
‫”‪� � ASKSHARIAH”askshariah@nbp.com.pk‬م �‬
‫‪9‬۔د�ا�ر‬ ‫��د � ۔ � � �رم � �ف � � � � ا� روز �ه � ��ں �‬
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‫ذر� � �۔‬
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‫)‪(07‬آ�� و�ا�ں � ا�د � � ۔‬
‫‪ii‬۔ �ا� � ورك اور ��‬
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‫اور �ارس � � ا�� ري اور �� ز � آ�ز � � ۔‬
‫�ا� اور ‪ 150‬و�وز � � � � ۔ ا� � � � �ل ‪� � 2024‬‬
‫‪� �� 50‬ا� � ا�� اور‪ 100‬ا�� و�وز‬ ‫د� آ�� ں ‪:‬‬
‫�� ف � ر� �وع �دي � ۔‬
‫� ��‬
‫ر�ن آ�� ‪:‬ا� � ڈي � � � �ز� اور�ر� � � ر�ن‬

‫اﯾﻦ ﺑﯽ ﭘﯽ اﻋﺘامد ﴍﯾﻌﮧ ﺑﻮرڈ ﺳﺎﻻﻧﮧ‬
‫رﭘﻮرٹ – ‪2023‬‬
‫ﺑﺴﻢ اﻟﻠﻪ اﻟﺮﺣﻤﻦ اﻟﺮﺣﻴﻢ‬
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‫� �� ا�ر � ِ‬
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EXECUTIVE MANAGEMENT
TAUQEER SHAHID IQBAL

MAZHAR CHODHRI
SEVP/ Group Chief, Retail EVP & Group Head, Corporate
Banking Group and Investment Banking Group
Tauqeer Mazhar has more than 30 years of banking experience Mr. Shahid brings in diversified professional experience with
in Corporate, Retail and Consumer Banking.Tauqeer is an an illustrious carrier spanning over 30 years. For the past 12
MBA from LUMS and started his career with Citibank in 1990 years, Mr. Shahid has been working at senior positions at large
as Management Associate and has worked in different senior commercial & investment banks DFIs. During his assignments
level roles at Citibank Pakistan, Saudi Arabia, USA and UAE. in the recent past, he has developed and turned around various
He then moved to ABN AMRO Bank, Kazakhstan as head core banking functions of Corporate and Remedial. As Group
of Retail/Consumer bank. Later joined KazInvest Bank in the Head CIBG, he is spearheading one of the largest corporate asset
same role. He has successfully launched retail/consumer portfolios of the country. Mr. Shahid is also the Chairman Board
bank twice with full menu of products. His last assignment of Directors at Agritech Limited. He holds an MBA degree and
prior to joining UBL was Head of Branch Operations for HBL, has also completed the Director’s Training Program from LUMS.
and prior to that as Chief Representative Punjab for HBL.
FOUAD MUHAMMAD
FARRUKH ISMAIL USUF
SEVP, Group Chief, Aitemaad SEVP/Group Chief, Treasury
Islamic Banking Group and Capital Markets
Twenty-Seven years experienced Banker with Retail, Corporate, Ismail has twenty-nine years experience as treasury professional.
Risk, and Islamic Banking in leadership roles. Experience In his current position, as the Group Chief Treasury & Capital
is divided in twenty years in Pakistan and six years in the Markets Group, he manages interest rate, foreign exchange
Middle East. Recognized and rewarded for building market- and liquidity risks of the bank. Ismail is an IBA graduate and
leading profitable, sustainable businesses. Prior to joining joined NBP Treasury in 2004 and has a proven track record of
National Bank, led Retail and Islamic Banking expansion successfully managing treasury. Prior to joining NBP he worked
for Faysal Bank Limited for over 8 years and Country Head with Faysal bank Treasury as well. He is well experienced
for HBL Bahrain, and Risk Head for Gulf Region of HBL. in setting up and managing Treasury business and brings
in-depth knowledge of Money Market, Foreign Exchange,
Capital Markets, Derivatives and Structured Products.
RIAZ
FAISAL AHMED HUSSAIN
TOPRA SEVP/ Group Chief, International
SEVP/Group Chief, Financial Institutions &
Consumer Assets Remittances Group
Mr. Ahmed did his MBA from USA and M.Phil from SZABIST Riaz has a diverse experience stretching 32 years with 25
with Gold medal. He joined the Bank in 1996 as OG-I. In the past years in the banking – encompassing areas as diverse as
28 year, he has delivered in diversified roles in credit, product Credit, Retail, Investment Banking, Audit, Strategic Initiatives,
development, corporate finance, HR and strategic planning, to Business Development, Risk Management, International
reach the SEVP level. He has been a member and chairman of Banking and Regulatory Remediation. He has rich experience
various executive level committees. Presently he is managing the of working at several large banks in Pakistan and in the
Bank’s consumer assets portfolio and institutional sales for both international markets. He has been managing strategic affairs
assets and liabilities. Ahmed is known for his passion for learning for overseas network and has also played an integral role
and accepting new challenges. He also represented the Bank in executing the strategy for NBP’s overseas network. Riaz
as a nominee Director on the Boards of First Credit Investment is a Certified Public Accountant from Texas, USA and has
Bank Limited and Pakistan Mercantile Exchange Company. done MBA from University of Houston, Texas, United States.

HAROON ABDUL
ZAMIR KHAN WAHID SETHI
SEVP, Group Chief, Risk SEVP/CFO, Financial
Management Group Control Group
Haroon has worked in banking and finance in Pakistan, Singapore, Abdul Wahid Sethi is currently serving as SEVP/ Chief Financial
Britain, and the Middle East. During his career he has worked in Officer. Mr. Sethi has rich & diversified experience of 25 plus
corporate relationship management, leveraged finance, venture years working at senior positions. He is a fellow member of
capital, banking operations, and risk management in American, the ICAP and holds an MBA Finance Degree from Imperial
European, Pakistani, and Japanese organizations. Prior to College Lahore. He has also served the Bank as SEVP/Chief
NBP, Haroon has served as Chief Risk Officer of two other Internal Auditor of the Bank. Prior to joining NBP in 2009, he
Pakistani banks. Haroon has degrees in business and finance worked at senior positions with various reputed organizations.
from Punjab University, Lahore University of Management Mr. Sethi is a great advocate of organizational capacity
Sciences, Cambridge University, and London Business School. building and promoting young professional talent in the Bank.
UMER AMIN
ANWAR MANJI
SEVP/ Group Chief, Internal SEVP/ Group Chief,
Audit & Inspection Group Information Technology
Umer possesses over two decades of experience in strategic Amin, the Bank’s CTO, brings more than 30 years of IT
financial leadership, internal auditing, risk management, and experience in Financial Services. Prior to joining NBP, Amin has
operational oversight within the banking sector. He is a Fellow held a variety of technology roles at various large Banks. With
Member of the Institute of Chartered Accountants of Pakistan. His expertise in IT Strategy, Technology & Digital Transformation
career is marked by significant roles at Pakistan leading financial and Disaster Recovery, he has a track record of developing
institutions such as Habib Bank Limited, MCB Bank Limited, high performance teams and strategically utilizing technology
Bank Alfalah Limited, and UBL Bank Limited. His expertise to deliver complex IT solutions in a globally interconnected and
encompasses a broad spectrum of banking operations, from culturally diverse environment. Amin serves on various leadership
risk management and compliance to internal audit functions. forums at NBP including various management committees. Amin
holds a B.S. from Cornell University in the USA and a Master’s
in Applied Finance from Macquarie University, Australia.
NAUSHABA KARIM
SHAHZAD AKRAM KHAN
EVP and Group Head (A), SEVP, Group Chief, Logistics,
Inclusive Development Group Communication and Marketing Group
Naushaba has a diversified banking career that spans over 33 Karim joined the Bank in 1995 and has held senior positions
years with expertise in Corporate, Commercial & SME Lending during his career spanning over 30 years. He moved to Bank
as well as Trade Finance & Risk Management in prominent of America in 1997, and rejoined NBP in the year 2000 as Vice
leadership positions. Currently she is heading Inclusive President to head Business Monitoring & Financial Control of the
Development Group and directs her efforts towards strategic Bank’s International franchise. During his career at NBP, he led
lending in Priority Sectors including Agriculture, MFI & SMEs, establishment of Corporate Banking network, headed Corporate
alongside growth of Bank’s Commercial Portfolio. She actively Credit Division, and worked in Credit Management Group. He
serves as a member on various Management Committees. Before has also served as Director-Financial Crimes & Investigation
joining NBP, she served as President / CEO (A) of First Women at National Accountability Bureau where he was recognized
Bank for two years. She holds MSc (Gold Medalist) from Punjab for rendering his distinguished services. After repatriation to
University Lahore and MBA from IBA Karachi with exceptional NBP, he was associated with Asset Recovery as Executive
distinction. Furthermore, she also represents NBP on the board Vice President, and subsequently assigned the responsibility
of Pakistan Agricultural Storage & Services Corporation Ltd. to lead Logistics, Communication & Marketing Group.

OSMAN IMRAN
MALIK FAROOQUI
EVP/Group Head, Special SEVP and Group Chief,
Assets Management Group Operations Group
Osman has a rich and diversified banking experience of over lmran has 26 years of banking experience working for leading
30 years working with leading banks in Pakistan and Middle banks in Pakistan in the field of Operations, Banking Services
East. After his MBA from LUMS, he started his career with Inspections and Project Implementation. He joined NBP from
Citibank in 1993. He has held variety of senior positions at HBL, where he was holding the position of Head Branch
different banks across Pakistan and Middle East. He brings Operations to ensure Regulatory Compliance and handle
vast experience ranging across Corporate, Commercial, Retail Technology Projects for Operations. Prior to joining HBL, he
and Remedial portfolio as well as Cash management and Risk was associated with Allied Bank where he held the position
management. Before joining NBP as Senior Credit Officer, he of Chief of Operations, Banking Services. Imran has an M.Sc.
was associated with HBL-Dubai as Head of Remedial Corporate from University of Peshawar and MBA from University of Sindh.
Bank. With his broad experience and acumen, he is leading the Imran has also worked for SBP as Assistant Director. In his
Special Assets Management Group (SAMG) as Group Head. previous stint with NBP, he was associated as Head of PMO.
MUHAMMAD SYED MUHAMMAD

ABDUL MOEED ALI ZAMIN
EVP/ Group Head (A), EVP/ Secretary
Compliance Group Board of Directors
Moeed has more than 26 years of experience in banking industry After completing his MBA in 1982, Zamin started his career
at various levels. He started his career with State Bank of with PICIC, a Development Finance Institution and holds vast
Pakistan and has also worked for HBL, United Bank Limited, experience in Project Financing, Research and Advertisement/
Bank Alfalah and National Accountability Bureau in the field of Public Relations. Before joining NBP, he served as EVP/Company
Regulatory Examinations, AML/CFT, Business Transformation, Secretary of PICIC for eleven years. Since his appointment
Compliance Reviews & Advisories, Investigation of Financial at NBP, he has successfully been leading the regulatory and
Crimes. He had also represented Banking sector during FATF listed compliance front, facilitating the corporate governance
onsite assessment of Pakistan in 2023. He joined NBP from practices and advising the Bank in areas of corporate matters.
HBL where he was working as Head of AML. He holds a Master He is a Certified Director from Pakistan Institute of Corporate
Degree in Statistics from University of Karachi & Post Graduate Governance, Fellow of Institute of Corporate Secretaries of
Diploma (PGD) in Business Administration from IBA, Karachi. Pakistan and Diploma Associate of Institute of Bankers, Pakistan.
MEHNAZ MIRZA MUHAMMAD

SALAR ASIM BAIG
EVP & Divisional Head, EVP and Group Head (A), Human
Legal Division Resource Management Group
Mehnaz Salar has qualified as a Barrister at law from Lincoln’s Asim is currently heading the HR function at NBP and has a rich
Inn and has been working as a banking lawyer for several years. banking and HR experience comprising of over two decades.
Prior to joining NBP, she has headed up legal departments Earlier in his career he was associated with Retail Business with
in various banks such as Citibank NA, Standard Chartered Union and Standard Chartered Bank. Diversifying his career,
Bank, Dubai Islamic Bank, Samba Bank and Meezan Bank. Asim started his HR journey from SCB and later on headed
the Learning & Development function at NIB Bank. Since then,
he has been in various leadership roles in HR, contributing
towards several key HR initiatives including but not limited to
transformation, diversity, inclusion and change management.
Asim holds an MBA degree and is a certified trainer. He
likes to mentor young professionals as a career counsellor.
SOHAIL
MALIK
EVP/ Chief Digital Officer,
Digital Banking Group
Sohail brings over two and a half decades of expertise in

digital banking & telecom industries to his current role. Before
assuming this pivotal position, he served as the Chief Digital and
Financial Inclusion Officer at HBL Microfinance Bank. Before that
he was Head Digital at FINCA Bank and the Head Branchless
Banking at MCB Bank. His diverse experience extends
beyond the finance sector, with notable roles in renowned
telecom companies such as PTCL, Wateen, DV Com & PTA.

ORGANISATIONAL
OVERVIEW
Principal Activities of The Bank
Throughout the year, NBP continued it’s core categorize into four main areas. Our wide range of
operations, year on year. These encompass a wide products and services is designed to meet all types of
range of services such as general banking, Islamic financial needs, both credit and non-credit, across our
banking, corporate banking, credit provision. ATM diverse customer base. Individuals can benefit from
and debit card facilities, investment banking, advisory various products, such as secure savings accounts,
services, treasury and capital market operations, financing options for government employees
housing and general finance, transaction banking, based on their salaries, mortgage finance to begin
cash management, digital banking, international trade home ownership, and convenient home remittance
and remittances. Additionally, the bank’s subsidiaries services for receiving funds from family abroad.
provided services including banking, currency
exchange, fund management and securities exchange. For businesses, NBP offers support in launching
startups, financing growth, managing payments
Our Product Universe securely and efficiently, expanding internationally,
effectively managing financial risks, and facilitating
We take a proactive approach to understanding our transactions with numerous business partners
customers and their banking needs, which we broadly worldwide through our branches and representative
offices.
Individuals SMEs Corporates Financial

Institutions
Current and Saving Deposit Account
Cash Management, Access to Global Trade & Exchange Markets

Deposits, Global Home Remmitance
Online Banking,
Debit Cards Bancassurance
Debit Card & Online Banking
Locker & Safe Deposits
Housing & Car Finance SME Financing

Financing Personal Agri. Loans Commercial Business Loans
& Business Needs
Advance Salary Working Capital & Project Finance
Gold Loans Trade Finance
Capital Markets
Financial & Syndicate Finance & Capital Advisory

Business Support Forex Trade, Fixed Income, Exchange Rate Hedging, Foreign Bill Discounting
Finance under G2P & P2G Merger & Acquisition, Balance Sheet Restructuring

Our Aspirations Our Priorities
Our ambitions stem from our broad market reach, We are confident of our aspirations and solid
robust capital foundation, resilient balance sheet, foundations, which will steer us through the
loyal customer base, and a motivational team. challenges faced by the banking industry and we
We hold a substantial portion of government and will efficiently achieve our core objectives and
public sector business. Notably, we are the sole priorities. As the Bank is moving forward through
bank in Pakistan to hold a ‘AAA’ rating from both restoring its fundamental strengths, we have defined
of the country’s recognized credit rating agencies. interconnected and mutually composite strategies
Our goal is to become the Nation’s Bank, catering for the years ahead. Our priorities are synchronized
to the diverse needs of all sectors of the economy, with our strategy for capitalizing other opportunities
including the rapidly expanding SME sector; Islamic offered by the market and set a solid path for us
banking, global remittances and cash management. to deliver our strategy towards capitalizing the
value addition opportunities offered by the market.
CUSTOMERS
BUSINESS FUNCTIONS
inclusive corporate & treasury & SPECIAL ASSETS
retail islamic international digital
development investment capital markets MANAGEMENT
support functions
OPERATIONS & LOGISTICS TECHNOLOGY & SYSTEMS FINANCE CONTROLS HUMAN RESOURCES
CONTROL & MONITORING
RISK & CREDIT MANAGEMENT LEGAL COMPLIANCE AUDIT & INSPECTION
CORPORATE GOVERNANCE
BOARD OF DIRECTORS & BOARD COMMITTEES
Our Operating Structure
The Bank has established a versatile and customer specific areas of operation, ensuring alignment
centric delivery system to offer financial services to with the overall business strategy of the bank. Each
Individuals, small and medium enterprises (SMEs), as business group is responsible for defining and
well as large corporate and public sector clients. We delivering the customer proposition and oversees
have dedicated business units for each category of end-to-end customer processes and product.
clients. Additionally, centralized functions at the Head Support and control functions, on the other
Office level support these business units in the seamless hand, formulate strategies to assist the
execution of their operations. Our Head Office control business functions in achieving their objectives.
functions play a supervisory and governance role by Control functions leverage their expertise to
setting policies and overseeing their implementations. develop and implement policy frameworks that
The business functions the primarily tasked with guide the activities of the business groups.
developing business plans and strategies for their

COVERAGE ACROSS
THE NATION KPK
248
Gilgit
Baltistan
28
The Widest Coverage Across the Nation
The bank has an extensive branch network that spans across the entire
country, reaching even the most remote rural areas where other banks are
absent. Our business operates through a diverse
and integrated structure, offering banking and non-banking
financial services through domestic and international branches,
subsidiaries, and partners.
AJK
Recent trends like urbanization, a growing middle 105
class, advancements in technology, and increased
local and global business connections are fueling
the expansion of both our Islamabad
traditional and Islamic banking 39
services. Additionally, the bank
has established an international
presence with branches and Punjab
subsidiaries in regions including 726
the Far East, Middle East, South
Asia, Central Asia, Europe, and
North America
Balochistan
86 Sindh
276
Geographical Presence
We consider it a privilege to contribute significantly to the country’s economy. Along with this privilege comes
a profound responsibility to the communities we serve nationwide.
Region Br. Region Br. Region Br. Region Br. Region Br.
Abottabad 31 Gwadar 27 Larkana 42 Quetta 33 Vehari 32
Bahawalpur 35 Hyderabad 42 Mansehra 28 Rawalakot 29 Islamic 188
Bannu 43 Islamabad 36 Mardan 42 Sahiwal 45
Corporate 6 Jhang 31 Mianwali 28 Sargodha 38
D.G. Khan 40 Jhelum 39 Mirpur AK 47 Sheikhpura 34
Faisalabad 105 Karachi South 35 Mirpur Khas 38 Sialkot 31
Gilgit 27 Karachi West 42 Multan 36 Sibi 45
Gujranwala 30 Lahore Central 33 Muzaffarabad AK 20 Sukkur 21
Gujrat 41 Lahore East 35 Peshawar 41 Swat 43
Province Br. Category Br.

Punjab 726 Conventional 1,320
Sindh 276 Corporate 6
KPK 248 Islamic 188
Balochistan 86 Islamic Windows 150
Gilgit Baltistan 28 Overseas 18
AJK 105
Islamabad 39

PRODUCTS &
SERVICES
Corporate and Commercial

Investment & Retail Islamic Treasury Digital
Working Working Deposit Corporate Debit/

Capital Capital Accounts Sales ATM Cards
Project Agriculture Remittance Financial Markets Mobile

Finance Finance Accounts & Rates Trading Apps
Investment in
Trade Personal Institutional Digital
Government
Finance Loans Accounts Channels
Securities
Cash Low-Cost Personal Equity G2P & P2G

Management Housing Finance Markets Payments
Investment GOP Initiated Investment Forex Subsidies

Banking & Advisory Loan Schemes. Services Solutions Schemes

CORPORATE
GOVERNANCE
Ensuing our organisational purpose to ‘be the Board Composition
Nation’s leading bank enabling sustainable growth
and inclusive development’, our philosophy of # Category Directors
Corporate Governance is to ensure a balanced 1. Independent 4
& sustainable delivery of value for each class
2. Non-Executive 2
of the Bank’s stakeholders. As an integral part
3. Executive 1
of the country’s financial eco-system, we are
cognizant of our duties as a corporate citizen to
act in a manner that benefits the Nation at large.
Accordingly, our approach to corporate governance Chairman President

enables an integrated thinking and decision making
that balances the achievement of our strategic
priorities over time and reconciles the interests of
the Bank, its stakeholders and society in creating
Commercial
and protecting sustainable shared value in the & Central Economics
Banking
short, medium and long term. In compliance of
the Codes of Corporate Governance and other
applicable laws & Regulations, our efforts and
Public
BoD Legal &
strategy have been focused upon strengthening Service Experience Regulatory
the Bank’s governance, its balance sheet and

building a talented team of professionals.
Finance & Inclusive

Accounting Development
Directors’ Membership and Participation
NBP-
No. Name Status Board BAC BHRCC BRCC BTDC BIDC
NYGC
1. Mr. Ashraf Mahmood Wathra* Chairman 14/14 8/8 2/2
2. Mr. Rehmat Ali Hasnie President 15/15 10/11 5/5 2/2 9/9
3. Mr. Farid Malik Director 13/15 8/9 10/10 1/1 4/5
4. Mr. Ahsan Ali Chughtai Director 15/15 11/11 2/2 11/11 9/9
5. Mr. Amjad Mahmood* Director 13/14 10/10 3/3 5/5 2/2
6. Mr. Ali Syed* Director 14/14 10/10 8/8 10/10 4/4
7. Mr. Nasim Ahmad* Director 13/13 9/9 4/4 1/1 2/2 6/6
8. Mr. Asif Jooma** Director 4/4 2/2 2/2 1/1
Chairperson
*Appointed on January 18, 2023

**Retired on March 08, 2023

Our Governance Framework
Our governance framework is embedded in the emerging opportunities and risks, be agile to
all the Bank’s operations and is designed to adopt new operating models, launch new product
provide clear direction for responsive decision- & services and effectively allocate its resources in
making and support responsible behaviour. a challenging & uncertain economic environment
This framework enables the Bank understand to deliver and protect sustainable shared value.
GOVERNANCE FRAMEWORK
INTERNAL
KEY LAWS & VOLUNTARY INTERNAL
FRAMEWORKS/
REGULATIONS STANDARDS MECHANISMS
STANDARDS
• NBP Ordinance, 1949 • Terms of Reference of • Integrated Reporting • Strategic Planning
and NBP Bye-laws, 2015 Board Committees of Framework published
the Board of Directors and by the IIRC • Stakeholder engagement
• The Banking Companies Management Committees
Ordinance, 1962 • Global Reporting Standards • Budgeting & Finance
• Code of Conduct of the Global Reporting
• Banks’ (Nationalisation) Initiative • Risk Management
Act-1974 • Comprehensive suite of
internal policies • Standards issued by the • People Management
• Companies Act-2017 Sustainability Accounting
Standards Board • IT Governance
• SBP Regulations & frameworks
• Investor relations
• Code of Corporate
Governance and
other SBP’s CGRF
• Pakistan Stock Exchange

Listing Rules
GOVERNANCE PRINCIPLES
Structure and effective Robust Control & Disclosure & Responsible corporate
functioning of the Board Compliance Transparency citizenship
GOVERNANCE FRAMEWORK
FINANCIAL SUSTAINABILITY
REGULATIONS RISK GOVERNANCE
GOVERNANCE GOVERNANCE
• Board Structure • Budgeting and • Risk management • Environment and Social
financial control Management System
• Rotation • Internal Controls (Under Approval)
• Capital allocation
• Committee charters • Internal Audit
• Performance management
• Policies • Compliance
• Taxation
• Board evaluation
• Culture & ethics
OUTCOMES AND VALUE CREATION THROUGH GOVERNANCE

Providers of Funds Shareholders Employees Government Suppliers Society Value Retained

Matters Reserved for the Board • Maintain a complete record of the Bank’s
significant policies along with their respective
The Board of Directors exercises its powers with dates of approval or amendment;
responsibility, diligence and after due deliberations in
• Establish performance evaluation criteria for
compliance with the requirements of applicable laws
the employees of the Bank and mechanism
including the National Bank of Pakistan Ordinance-1949,
for addressing integrity and ethical issues;
the Banking Companies Ordiance-1962, the Bank’s
(Nationalisation) Act-1974, the Companies Act 2017, • Appointment/removal, determination of
the Listed Companies (Code of Corporate Governance) remuneration and renewal of contracts, terms
2019, the Public Sector Companies (Corporate and conditions of key management positions;
Governance) Rules, 2013, and the Bye-laws of the
Bank as approved by the Federal Government in 2015. • Consider absorption or regularisation of
Moreover, the regulations put in place by the State Bank employees, appointed or recruited under
of Pakistan, the Ministry of Finance, Pakistan Stock contract with the Bank and on third party
Exchange Limited, the State Bank of Pakistan, and the contracts, under the terms of service as
Securities and Exchange Commission of Pakistan also determined by the Board, including but not
form an integral part of our corporate governance. There limited to their remuneration, transfer or
are a number of areas where the Board has delegated posting, evaluation criteria, promotions, end
powers and responsibilities to its Committees and to service benefits, etc.
the management. At a broader level, general direction
and superintendence of the affairs of the Bank and the Role of the Chairman
overall policy making in respect of its operations, are
vested in the Board. The Board exercises its powers and The Chairman serves as a leader and driving agent
discharge its duties in accordance with sound banking of the Board of Directors, monitoring and managing
principles and prudent banking practices and shall its activities, and aligning the Board’s goals and
ensure compliance with the regulatory requirements. decisions with that of the Management of the
Without prejudice to the powers conferred to the Board Bank. While is Chairman isn’t involved day to day
as stated above, the Board is generally responsible to: operations of the Bank, he is generally responsible
to ensure:
• Ensure that the Bank’s strategies and policies
are aligned with its Vision and Mission • the effective functioning of the Board
towards achieving its strategic goals; and its Committees in line with regulatory
requirements;
• Establish effective credit & risk management
and internal controls framework; • that all matters relevant to the governance
of the Bank are placed on the agenda of
• Approve and periodically review strategic Board meetings;
business plans, budget, investments in major
projects and new ventures, related party • that all the directors are enabled and
transactions and donations, etc.; encouraged to fully participate in the
deliberations and decisions of the Board;
• Review of management letter issued by the
external auditors; and approval of the Banks’s • that minutes of the meeting truly reflect
financial statements including dividend pay- what transpired during the meeting and
out and appointment of external auditors; dissent of Directors, if any, is properly
recorded in the minutes; and
• Consider significant issues, placed by the
CEO, for the information, consideration and • lead the Board and ensure its effective
decisions of the Board and its Committees; functioning and continuous development.
• Consider the matters recommended by the
Board Committees and review of internal
audit reports;

Committees of the Board Board HR & Remuneration Committee
The Board establishes its Committees to streamline Name Status Category
the discharge of its responsibilities. For each Board Mr. Ashraf
Committee, the Board adopts formal Terms of Chairman /
Mahmood Chairman
Reference (ToRs) setting out the matters relevant to Independent Director
Wathra
the composition, roles, functions, responsibilities and
administration of such Committees. During the year, Mr. Farid Malik Member Independent Director
the Board had established the following Committees: Mr. Ali Syed Member Independent Director
1. Board Audit Committee Key Functions of the Committee

2. Board Human Resource &
Remuneration Committee The Committee is responsible for the review and
3. Board Inclusive Development Committee recommendation of human resource policies
4. Board Technology & Digitalisation Committee for Board approval and advising the Board on
5. Board Risk & Compliance Committee matters concerning senior executive recruitment,
6. NBP-NY Governance Council appointments, and disciplinary actions. Additionally,
(Sub-Committee of BRCC) it recommends remuneration packages for Bank
staff, oversees industrial relations, and evaluates
organizational restructuring when necessary. It also
The Board Committees’ ToRs are reviewed provides guidance on training policies and diversity
periodically, or on need basis. It is intended that & inclusion strategies, reviews succession planning &
each Board Committee has a Non-Executive
key performance indicators and any other functions
Director as Chairman of the Committee. As a matter
of principle, Committee Members have access to in line with the applicable laws and regulations.
the appropriate external and professional advice
needed to assist the Committee in fulfilling its role. Board Inclusive Development Committee
Board Audit Committee Name Status Category

Mr. Ashraf
Independent
Name Status Category Mahmood Chairman
Director
Mr. Ahsan Ali Wathra
Chairman Independent Director Mr. Amjad Non-Executive
Chughtai Member
Mr. Nasim Mahmood Director
Member Independent Director Mr. Nasim Independent
Ahmad Member
Mr. Ali Syed Member Independent Director Ahmad Director
Mr. Amjad Non-Executive Mr. Rehmat Ali Executive
Member Member
Mahmood Director Hasnie Director
Mr. Farid Malik Non-Executive Key Functions of the Committee
Director
Director
The Committee is responsible for advising and
Key Functions of the Committee reporting to the Board on the status of inclusive
The Committee has oversight responsibilities relating development activities and initiatives within the
to the effectiveness of the Bank’s internal & external Bank. This involves reviewing the Bank’s progress
audit functions, and integrity of the Bank’s financial across various sectors such as low-cost housing,
statements. It oversees the system of internal controls, SME, agriculture, financial inclusion and women’s
safeguarding of Bank’s assets against associated risks, empowerment. Additionally, it monitors progress on
compliance with the applicable legal and regulatory these initiatives, suggesting policy changes to facilitate
requirements, corporate governance and facilitating the growth in underserved segments. Ensuring adequate
Board in establishing a clear & observable ‘tone at the resources and capacity for implementing inclusive
top’ for strong and effective system of internal controls
development mandates, aligning CSR strategy,
based on and supported by sound ethical practices,
and collaboration with governmental bodies for
control culture, comprehensive policies, procedures,
processes and technological systems. It also oversees subsidised financings and low-cost housing initiatives.
compliance with the Bank’s Code of Conduct.

Board Risk & Compliance Committee resources are up-to-date and meeting requirements,
including hardware, software, middleware, and
security. The Committee also oversees risk
Name Status Category
management strategies to achieve resilience against
Mr. Ahsan Ali Independent wide-scale disruptions, such as Cyberattacks, and
Chairman
Chughtai Director monitors technology policies and plans like IT &
Independent Digital Strategy and Cybersecurity Implementation
Mr. Ali Syed Member
Director Plan. It receives updates from management-level
Mr. Nasim Independent committee (Technology & Digital Steering Committee)
Member on approved technology-related projects, reviews
Ahmad Director
business continuity arrangements including disaster
Mr. Rehmat Ali Executive
Member recovery and backup, and ensures that technology
Hasnie Director
procurement aligns with the approved IT strategy.
Key Functions of the Committee
NBP- NY Governance Council (Sub
The Committee encompasses a comprehensive Committee of BRCC)
approach to both Risk Management and Compliance.
With regards to Risk Management, it guides the Name Status Category
development and review of Risk Management Policies,
oversees the adequacy of risk management systems Chairman
Hasnie Director
& controls, and monitors the Bank’s Risk Appetite
and associated limits. Additionally, it evaluates risk Mr. Ahsan Ali Independent
Member
management strategies, ensures alignment with the Chughtai Director
Bank’s overall strategy, and assesses the performance Mr. Nasim Independent
of the Risk Management function in the Bank. On Member
Ahmad Director
the Compliance front, the Committee shapes the
Compliance Risk Management framework and policies,
oversees their implementation, and fosters a culture Performance Evaluation of The
of compliance within the Bank. It oversees addressing Board of Directors
compliance concerns related to overseas branches,
conducts regular reviews of compliance-related risk The Board of Directors is keen to ensure the
factors and reports, and monitors the implementation of effectiveness of its performance which is evaluated
regulatory requirements and due-diligence milestones. periodically. In terms of the SBP Guidelines on
Performance Evaluation of the Board of Directors, vide
Board Technology and Digitalization corporate governance regulatory framework, the Board
Committee (BTDC) has put in place a formal mechanism for performance
evaluation of the overall Board and its Committees.
Name Status Category
Non-Executive Directors’ Remuneration Policy
Mr. Farid Malik Chairman
Director The shareholders of the Bank, in their general
Mr. Amjad Non-Executive meeting held on July 27, 2020, had approved a
Member
Mahmood Director Board Remuneration Policy for the non-executive/
Independent independent directors for attending meetings of
Mr. Ali Syed Member the Board and Board Committees. This Policy
Director
is compliant with applicable laws including the
Member Banks’ (Nationalisation) Act 1974, NBP’s Bye-laws,
Hasnie Director
and instructions of the State Bank of Pakistan.
In terms of this Policy, the Board shall, from time
Key Functions of the Committee to time, determine and recommend such level of
remuneration for approval by the shareholders, for
The Committee is tasked with advising and updating
attending meetings of the Board or meetings of the
the Board on technology activities and digital
Committees thereof, as may be within the limits for
initiatives within the Bank. It reviews the overall
such remuneration as prescribed by the SBP from time
business needs and available resources to meet
to time and determined to be an adequate measure
these needs, recommending IT and digital strategies
of remuneration for the performance of relevant
and policies to the Board. Ensuring that technology

duties by such members. In terms of this Policy, • To serve as the link between the Board and
the Board shall also ensure that such remuneration Senior Management for execution of Board
is not determined in a manner that may undermine driven vision and strategies;
the independence of the Board or Committee • To comply with and ensure bank-wise
members. The detail of compensation paid to the implementation of and compliance with
Directors in 2023 is given in financial statements. all policies, procedures and manuals
approved by the Board of Directors, and any
Ethics and Compliance directives given by the Board of Directors or
Board Committee(s);
The Bank’s comprehensive code of conduct ensures • To prepare plans for growth and expansion
that high standards of ethical behavior are embedded of the Bank’s operations, and submit the
in all aspects of business conduct, decision-making same for consideration and approval of the
and compliance of laws and regulations. It is mandatory Board of Directors;
for members of the Board and employees to read, • To deal with, represent, and act on behalf of
acknowledge, and abide by the Code of Conduct, the Bank before the State Bank of Pakistan,
on joining and throughout their tenure. The Code of Securities and Exchange Commission of
Conduct is regularly updated in line with changes in Pakistan, federal and provincial ministries,
applicable laws and regulations. Grievances arising government departments, local bodies,
corporations, courts, stock exchanges, and
due to any unethical practices are promptly identified any other competent authority;
and redressed to mitigate any occurrence in future.
• To ensure that the culture and values of
Matters Delegated to the Management the Bank are upheld at all times, the Board
receives timely, accurate and complete
information, shareholders’ interests are
The Board of Directors approves the strategic plan/ protected in compliance with laws and
objectives and takes the overall responsibility of regulations, meetings are duly recorded,
overseeing its implementation. The Board performs its productive participation of board members,
duties by giving guidelines to the Management, setting and effective resolution of issues.
performance targets and monitoring their achievements.
The Management is primarily responsible for Management Committees
implementing the strategies as approved by the Board
of Directors in effectively conducting the operations of The Bank has several management committees for
the Bank. Tactical and operational matters are delegated the purpose of strategic planning and decision-making
to the Management. Further, under the direction and under the Chairmanship of the CEO. The Board of
oversight of the President & CEO of the Bank, the Senior Directors has approved the Committees and their
Management carries out and manages the Bank’s TORs. The role of these Committees is to ensure that
activities in a manner consistent with the strategic plan, the activities of the Bank reflect its vision, purpose and
business goals, risk appetite and ensuring compliance aims. They establish the fundamental values, ethical
with policies approved by the Board of Directors. principles and strategic direction in which the Bank
operates. These Committees meet regularly and their
Roles and Responsibilities decisions are communicated to the Board frequently.
of the President/CEO
1. Executive Committee
The Chief Executive Officer at Bank plays a critical
2. Enterprise Risk Management Committee
and significant role, and is entrusted with numerous
3. Expense Approving Committee
responsibilities, subject to the control and supervision
of the Board of Directors. The Chief Executive has the 4. Publication Committee
authority over and responsibility for the management 5. Management Credit Committee
of the affairs of the Bank subject to the overall control 6. Management Committee on
and direction of the Board. The Chief Executive and Overseas Operations
other officers of the Bank shall act in accordance with 7. Assets & Liability Committee
the policies, criteria and guidelines determined by the 8. Equity Investment Committee
Board. The Chief Executive and other officers of the 9. Disciplinary Cases Committee
Bank shall exercise their powers and discharge duties 10. Technology and Digitalisation Steering
in accordance with sound banking principles and
Committee
prudent banking practices and shall ensure compliance
with the instructions and directions that may be issued 11. Compliance Committee of Management
by the Board and the State Bank from time to time. Role
of the President/CEO also includes:

Shares held by Directors, CEO, their Whistle Blowing/Speak-up Policy
Spouses and Minor Children
Under Code of Conduct of the Bank, all employees
Shares held by Directors, the Chief Executive Officer, are required to behave with integrity and honesty
their spouses and minor children have been disclosed in their dealing and any suspected violation of law,
in the “Pattern of Shareholding” section. regulation or ethical standard must be reported to
the appropriate level of authority in the Bank. The
Director’s Training Whistle Blow policy encompasses the process
of submitting concerns and complaints, directed
Trainings are arranged to acquaint Directors with towards the Bank, by independent third parties,
the latest developments and trends in the areas of for the sake of ensuring transparency in Bank’s
governance, management and leadership. These affairs and wherever they found any impropriety in
trainings are aimed at increasing directors’ familiarity conducting the business of the Bank. The objective
with the Bank and financial services industry, of the policy is to encourage Bank employees and
equipping them with sufficient information and all other stake holders to raise concerns in good
resources to facilitate informed decision-making. faith, having identified or discovered any financial
malpractices hitting bank profitability or wrong
Director’s Orientation doing which may affect Banks reputation. Whistle-
Blowing covers reporting of incidents of misconduct,
Directors’ Orientation refers to the process of helping involving or affecting an organization, to enable the
new Directors contribute fully, and as early as possible organization to take appropriate action. It is a window
in their tenure, to the governing work of the Board. The to obtain feedback on issues bordering on both
objective of the orientation is to enable the Directors to: corporate governance, as well as reputational risk.
• Understand their roles, responsibilities Who Can Speak-Up/Blow the Whistle?

and time commitment to governance work
around the Board and Committees. Any individual, institution and an employee of the
Bank and its subsidiaries (irrespective of employment
• Be aware of the current goals, opportunities type) from Bank’s local as well global operations,
and challenges facing the organization. who has observed a reportable misconduct, shall
report his / her concerns to the designated officials
• Be aware of who the organisation’s main
within the Bank. The Board of Directors and the
stakeholders are, including clients, partners,
Board Risk & Compliance Committee (BRCC)
public, as well as the staff.
give assurance that employees, stakeholders,
• Develop an understanding of how their own or any member of the public can raise legitimate
background, knowledge, experience and concerns, without fear of reprisals, provided they
skills will contribute to the current work of are made in good faith. All staff should ensure that
the Board, and the goals of the organisation. they take steps to disclose any wrongdoings or
malpractices of which they become aware as non-
• Appreciate the background, knowledge, action / concealment will be deemed as complicity.
experience and skills of other Directors.
Protection to a Whistle-Blower
• Gain knowledge of how the Board meetings
are run, decisions are made, and what By setting up the necessary procedures
formal governing policies and practices safeguarding confidentiality and offering anonymity,
exist; and the interests of the whistle-blower are protected
from possible harassment or victimization by
• Understand how the Board functions
those accused of misconduct. Any person
similarly or differently from other boards
who makes a disclosure or raises a concern
they have served on, or are serving on.
under this Policy will be protected if the person:
Appointment of Directors • Discloses the information in good faith.
Pursuant to the provisions of the Banks’ • Believes it to be substantially true.

(Nationalisation), Act, 1974 (XIX of 1974), the Directors
of the Bank shall be appointed by the Federal • Does not act maliciously or make false
Government for a period of three years. Appointment allegations, and
of Directors has been mentioned in the Statement of
• Does not seek any personal or financial gain.
Compliance with Code of Corporate Governance.

Investor Information and Engagement Annual Corporate Briefing
Being a listed Public Limited Company, NBP is The Bank held its annual corporate briefing on March
determined to discharge its obligation of providing 10, 2023. CEO of the Bank jointly with the CFO
material information about its financial position & presented a detailed analysis of Bank’s performance
performance, its group companies, management, along with future outlook; session was followed by
operations as well as its future prospects. At NBP, Q&A session.
investor engagement is conducted through the
Company Secretary office as well as by an Investor Social and Environmental
Relations ‘IR’ team within the finance function. The Responsibility Policy
IR team ensures that all material developments are
communicated to investors and analysts via statutory With a Vision to be the Nation’s leading bank enabling
announcements through the stock exchange and sustainable growth and inclusive development, we
holding analyst briefing. Such information is also have embedded the consideration of social, economic
made readily available on the Bank’s website. In and environmental impacts into our business strategy.
addition, in-person discussions are also arranged We take our responsibilities to the society and the
with foreign analysts and shareholders as and environment seriously, and we commit to being
when required. The idea behind the Bank’s investor transparent and accountable for our impacts. In line
engagement through these briefings is to give the with the Environmental & Social Risk Management
right perspective of the business affairs of the Bank Implementation Manual issued by the State Bank
to the investors (both existing and potential) which of Pakistan, our Board and Senior Management
help them in making their investment decisions. are committed to develop an Environmental
Our Company Secretary office strives for timely and Social Management System to understand,
dissemination of material information e.g. financial monitor and manage its social, environmental
statements, to shareholders. The Bank has put and economic impact to enable it to contribute to
into place comprehensive guidelines to address society’s wider goal of sustainable development.
their grievances for the Investors and Shareholders
in compliance with the regulatory requirements: Steps to Encourage Minority
Shareholders Participation
• For all shares related matters, shareholders
are requested to contact the Bank’s Shares The Bank encourages minority shareholders to
Registrar with contact details available on participate in the AGM as well as the analyst
the Bank’s corporate website. briefing sessions, the date of which are announced
through the stock exchange. These events
• In order to facilitate the shareholders
provide an open forum for a two-way engagement
who, intend to register a complaint, the
with our stakeholders, particularly the minority
contact details of the focal person of
shareholders. Participation of the minority
Shares Department are given on the Bank’s
shareholders to these events is encouraged through:
corporate website for this purpose.
• Notice of General Meetings is published
• In addition, if Shareholders’ grievances are
at least 21 days before the meeting in
not resolved by the Shares Registrar of the
newspapers having nationwide circulation.
Bank, they may escalate their complaints to
Moreover, the notice is also circulated from
the Company Secretary of the Bank.
the forum of Pakistan Stock Exchange.
• If a complaint still remains unaddressed, the
• The Bank timely updates its website with
same can be forwarded to Securities and
respect to all notices of general meetings.
Exchange Commission of Pakistan (SECP);
using the link of SECP website which is • Annual Report of the Bank is sent to each
available on the Bank’s corporate website. member of the Bank before Annual General
Meeting
• Furthermore, queries with respect to
financial position & performance results • During AGM, Analyst Briefing a detailed
of the Bank can be directed to ‘Investor briefing on the Bank’s performance and
Relations’ team, which is headed by Chief strategies is given to the shareholders.
Financial Officer, at the email address
investor.relations@nbp.com.pk (which is • The shareholders are encouraged to raise
also available on corporate website as well). queries and give suggestions relating to the
Bank’s operations.

Issues Related to Last AGM Disclosures beyond BCR Criteria
General queries and clarifications sought by Over the recent years, there have been significant
shareholders regarding the agenda points, developments in the corporate reporting domain,
dividend payment, financial & operational particularly in relation to the amount of details included
performance of the Bank were addressed to in the entities’ annual reports, as well as the importance
their satisfaction. Apart from the said queries, ascribed by users to the information beyond the
no significant issue or concern was raised. audited financial statements and the auditor’s report
thereon. There has been an evolution in the manner
Meetings of the Board in which entities disseminate and communicate
information to their stakeholders as users attach
The Board held 15 meetings during the year. Notices / increasingly greater importance to supplementary
agendas of the meetings were circulated in advance, information and look for better ways to inform their
in a timely manner. Decisions made during the analysis and confirm understanding of more complex
meetings were clearly stated in the minutes of these areas in the financial statements. Considering this
meetings maintained by the Company Secretary, emerging necessity, the Bank strives to go beyond
duly circulated to all directors for endorsement and the realm of essential reporting requirements
were approved in the subsequent Board meetings. in order to disclose all relevant information that
All Board meetings held during the year surpassed facilitates the stakeholders in understanding various
the minimum quorum requirements of attendance aspects of the Bank’s operational and financial
as prescribed by the applicable regulations performance. Following is the list disclosures that
and were also attended by the Chief Financial have been made in addition to the BCR criteria:
Officer and the Company Secretary, as required.
• President/CEO Review
Board Meetings held outside Pakistan • Key interest bearing Assets and Liabilities
Despite provisions by SECP and the Bank’s overseas • Quarterly Performance Analysis
operations, all Board meetings were held inside
• Six Years’ Financial Performance 2018-2023
Pakistan at the Bank’s Head Office and through Zoom.
• Four Years’ summary of operating expenses
Internal Audit
• Six Years’ summary of markup and non-
markup income
The Board appoints the Chief Internal Auditor, who
functionally reports to the Board Audit Committee • Statement on Internal Controls
and administratively to the President/CEO; whereas
performance appraisal of the CIA is carried out by • Groups’ Performance Reviews
the Audit Committee. The Board ensures that Chief • Detail of Management Committees & Other
Internal Auditor is suitably qualified, experienced and Senior Management
conversant with the Bank’s policies and procedures;
and the Internal Audit team comprises of experts • Investor Awareness through Jama Punji
of relevant disciplines in order to cover all major Initiative by the Securities & Exchange
heads of accounts maintained by the Bank. The Commission of Pakistan.
Chief Internal Auditor function continuously monitors
implementation of the policies and effectiveness of the Performance of Prime Minister’s
internal controls framework approved by the Board. Delivery Unit
Capital expenditures planned for next year: • NBP’s PMDU Team handles two dashboards
i.e. Pakistan Citizen Portal and the product
The Bank has budgeted capital expenditure for specific Prime Minister’s Youth & Agriculture
the next year. This would primarily be invested in Loan Scheme (PMYP & ALS).
increasing our Core Banking Application and other
Technology Platform upgrade, operational outreach, • As of December 31, 2023, 27,534 complaints
safeguarding our existing infrastructure / relationships were received on President NBP’s PCP
from growing threats on cyber security front along with Portal out of which 27,477 stand addressed.
normal replacements to ensure smooth operations. Besides, 24,074 complaints were received
on Prime Minister’s Youth & Agriculture Loan
Scheme Portal out of which 24,072 were
addressed.

• On President NBP’s PCP Portal, 66.79% on an unbiased, arm’s length basis. Pursuant to the
complainants posted their feedback out of regulatory requirements, all related party transactions
which 46.4% have shown their satisfaction to are placed before the Board Audit Committee every
the response posted by the PMDU Team. quarter, for review and recommendation to the Board
of Directors. The same are then placed before the full
• In line with Prime Minister’s Office instructions, Board for consideration and approval by the Board
President NBP conducts 2 hours’ e-Kachehri as per the Audit Committee’s recommendations.
sessions every month wherein general public All members of the Board are required to disclose
notifies their complaints regarding the Bank their interests held in their individual capacity.
through telephone calls. The session is
telecasted live on facebook. Details of all related party transactions both
affecting balance sheet and profit & lose account
• The e-Kachehri events were publicized on have been adequately disclosed under note
the Bank’s social media channels including 45 of the unconsolidated and note 46 of the
Facebook, Instagram, Twitter & LinkedIn consolidated financial statements along with
and also on Bank’s website. During 2023, transactions with government related parties.
08 e-Kachehri sessions were conducted as
per the given SOPs of PM’s Office, wherein, Adoption and Statement of Adherence
approx. 300 calls were taken. with the International Integrated
Reporting Framework
Managing Conflicts of Interest
An integrated report aims to provide insight about the
The Directors manage their personal, financial and resources available to an entity collectively referred
business affairs in a manner that ensures avoidance of to as “the CAPITAL” and categorized as financial,
any conflict of interest. At an individual level, members manufactured, intellectual, human, social and
of the Board declare conflicts of interest situations relationship, and natural capital. An Integrated Report
and withdraw from taking part in deliberations on/ also seeks to explain how the organization interacts
exercising influence over matters where conflict or the with the external environment and the CAPITALS to
appearance of conflict of interest arises. The actions create, preserve or erode value over the short, medium
are appropriately minuted for future reference. In and long term. It also supports integrated thinking,
addition, the affiliations and transactions of Directors’ decision-making and actions that focus on the
are regularly reviewed to ensure that there are no creation of value over the short, medium and long term.
conflicts or relationships that might impair Directors
independence. One of the key duties that Directors Integrated framework is still a voluntary practice in
owe to the Bank is the duty to avoid conflicts of its early stages. As of August 2022, the International
interest. This includes not placing one’s self in Accounting Standards Board ‘IASSB’ and the
a position where the Director’s personal interest International Sustainability Standards Board ‘ISSB’
could possibly conflict with their duty to the Bank. actively encouraged the continued adoption and
use of the Integrated Reporting Framework and the
Related Party Transactions Integrated Thinking Principles underpinning it. NBP,
being a Systemically Important Bank and one of largest
The Bank may enter into transactions with its commercial banks in the country, plays a critical role
related parties in its daily operations to meet its in financial ecosystem of the country. By virtue of its
business objectives, while doing so we recognize role as ‘Banker to the Nation’, NBP has an impact
the need to maintain transparency and to fulfill our far beyond the financial bottom line. In line with the
obligations towards all our stakeholders, including increasing industry practice and recommendations
the shareholders, regulators, employees, etc. The of IASB and ISSB, the Bank has started reporting
Bank follows the philosophy that there must not be as per the Integrated Reporting Framework to
any conflict of interest or non-disclosure of such presented a holistic & integrated overview of its
transactions. In this connection, the Bank has a philosophy to create value for its stakeholders over
formal documented Related Party Transactions the short, medium and long term. We will continue
Policy, approved by the Board of Directors. This to improve the information produced to make it
policy governs ‘transactions between the Bank and more comprehendible, while taking into account
its related parties’ and aims to ensure that the Bank the opinion of stakeholders reading this report.
meets its obligations under the applicable legal and
regulatory requirements and applicable Financial
Reporting Standards. Transactions with related parties
arising in the normal course of business are carried out

STATEMENT OF
COMPLIANCE
Statement of Compliance with the Public Sector Companies (Corporate Governance) Rules, 2013 and
Listed Companies (Code of Corporate Governance) Regulations, 2019
Name of Bank: National Bank of Pakistan

Name of the line Ministry: Ministry of Finance
For the year ended: December 31, 2023
I. This statement is being presented to comply with the Public Sector Companies (Corporate Governance)
Rules, 2013 (the Rules) and Listed Companies (Code of Corporate Governance) Regulations,
2019 (the Regulations) (both herein referred to as ‘Codes’) issued for the purpose of establishing a
framework of good governance, whereby a public sector bank is managed in compliance with the
best practices of public sector governance. In case where there is inconsistency with the Regulations,
the provisions of the Rules shall prevail and in case of any conflict between the Codes and the Banks
(Nationalization) Act, 1974, the provisions of the Banks (Nationalization) Act, 1974 have been followed.
II. The Bank has complied with the provisions of the Rules in the following manner:
Y N
S.No. Provision of the Rules Rule No. Tick the
relevant box
1. The independent directors meet the criteria of independence, as defined under the Rules. 2(d) √
2. The Board has the requisite percentage of independent directors. As at December 31, 3(2) √
2023, the Board includes :
Date of
Category Names
Appointment
Independent Directors - Mr. Ashraf Mahmood Wathra 18-1-2023
- Mr. Ahsan Ali Chughtai 21-6-2021
- Mr. Ali Syed 18-1-2023
- Mr. Nasim Ahmad 18-1-2023
Executive Directors - Mr. Rehmat Ali Hasnie 07-08-2023
CEO/President
Non-Executive Directors - Mr. Farid Malik 27-8-2023

- Mr. Amjad Mahmood 18-1-2023
3. A casual vacancy occurring on the board was filled up by the directors within ninety days. 3(4) √
4. The directors have confirmed that none of them is serving as a director on more than five 3(5) √
public sector companies and listed companies simultaneously, except their subsidiaries.
5. The appointing authorities have applied the fit and proper criteria given in the Annexure in 3(7) √
making nominations of the persons for election as Board members under the provisions of
the Ordinance.
6. The Chairman of the Board is working separately from the Chief Executive of the Bank. 4(1) √
7. The Chairman has been elected from amongst the independent Directors, except where the 4(4) √
Chairman of the Board has been appointed by the Government.
8. The Board has evaluated the candidates for the position of the Chief Executive on the basis 5(2)
of the fit and proper criteria as well as the guidelines specified by the Commission. (Not N/A
applicable where the Chief Executive has been nominated by the Government)
9. a) The Bank has prepared a “Code of Conduct” to ensure that professional standards and 5(4) √
corporate values are in place.
b) The Board has ensured that appropriate steps have been taken to disseminate it √
throughout the Bank along with its supporting policies and procedures, including
posting the same on the Bank’s website www.nbp.com.pk.
c) The Board has set in place adequate system and controls for the identification and √
redressal of grievances arising from unethical practices.

10. The Board has established a system of sound internal control, to ensure compliance with 5(5) √
the fundamental principles of probity and propriety; objectivity, integrity and honesty; and
relationship with the stakeholders, in the manner prescribed in the Rules.
11. The Board has developed and enforced an appropriate conflict of interest policy to lay 5(5) √
down circumstance considerations when a person may be deemed to have actual or (b)(ii)
potential conflict of interests, and the procedure for disclosing such interest.
12. The Board has developed and implemented a policy on anti-corruption to minimize actual 5(5) √
or perceived corruption in the Bank. (b)(vi)
13. a) The Board has ensured equality of opportunity by establishing open and fair 5(5) √
procedures for making appointments and for determining terms and conditions (c)(ii)
of service.
b) A committee has been formed to investigate deviations from the Bank’s Code of √
Conduct.
14. The Board has ensured compliance with the law as well as the Bank’s internal rules 5(5) √
and procedures relating to public procurement, tender regulations, and purchasing and (c)(iii)
technical standards, when dealing with suppliers of goods and services in accordance with
PPRA Rules.
15. The Board has developed a vision or mission statement, corporate strategy of the Bank. 5(6) √
16. The Board has developed significant policies of the Bank. A complete record of the 5(7) √
particulars of the significant policies together with the date on which they were approved or
amended has been maintained.
17. The Board has quantified the outlay of any action in respect of any service delivered or 5(8)
goods sold by the Bank as a public service obligation, and has submitted its request for
appropriate compensation to the Government for consideration.
18. The Board has ensured compliance with policy directions requirements received from the 5(11) √
Government.
19. a) The Board has met at least four times during the year. 6(1) √
b) Written notices of the Board meetings, along with agenda duly approved by the √
6(2)
Chairman, were circulated at least seven days before the meetings.
c) The minutes of the meetings were appropriately recorded and circulated. √
6(3)
20. The Board has monitored and assessed the performance of senior management on annual 8(2) √
basis and held them accountable for accomplishing objectives, goals and key performance
indicators set for this purpose.
21. The Board has reviewed and approved the related party transactions placed before it after 9 √
recommendations of the Audit Committee. A party-wise record of transactions entered into
with the related parties during the year has been maintained.
22. a) The Board has approved the profit and loss account for and balance sheet as at the end 10 √
of first, second and third quarter of the year as well as the financial year end.
b) The Board has ensured that half yearly accounts are prepared and reviewed by the √
external auditors.
c) The Board has placed the annual financial statements on the Bank’s website. √
23. All the Board members underwent an orientation course arranged by the Bank to apprise 11 √
them of the material developments and information as specified in the Rules.
24. a) The Board has formed the requisite committees, as specified in the Rules. 12 √
b) The committees were provided with written term of reference defining their duties, √
authority and composition.
c) The minutes of the meetings of the committees were circulated to all the Board √
members.
d) The committees were chaired by the following non-executive directors: √
No. of
Committees Name of Chairman
Members
Board Audit Committee 05 Mr. Ahsan Ali Chughtai
Board HR & Remuneration Committee 03 Mr. Ashraf Mahmood Wathra
Board Risk & Compliance Committee 04 Mr. Ahsan Ali Chughtai
Board Technology & Digitalization Committee 04 Mr. Farid Malik
Board Inclusive Development Committee 04 Mr. Ashraf Mahmood Wathra
NBP-NY Governance Council 03 The President
(Sub-Committee of BRCC)
25. The Board has approved appointment of Chief Financial Officer, Company Secretary 13 √
and Chief Internal Auditor, with their remuneration and terms and conditions of
employment, and as per their prescribed qualifications.

26. The Chief Financial Officer and the Company Secretary have requisite qualification 14 √
prescribed in the Rules.
27. The Bank has adopted International Financial Reporting Standards notified by the 16
Commission in terms of sub- section (1) of section 225 of the Act.
28. The Directors' Report for this year has been prepared in compliance with the 17 √
requirements of the Act and the Rules and fully describes the salient matters required to
be disclosed.
29. The directors, CEO and executives, or their relatives, are not, directly, or indirectly, 18 √
concerned or interested in any contract or arrangement entered into by or on behalf of
the Bank except those disclosed in pattern of shareholding to the Bank.
30. a) A formal and transparent procedure for fixing the remuneration packages of 19 √
individual directors has been set in place and no director is involved in deciding his
own remuneration.
b) The Annual Report of the Bank contains criteria and details of remuneration of each √
director.
31. The financial statements of the Bank were duly endorsed by the Chief Executive and 20 √
Chief Financial officer, before approval of the Board.
32. The Board has formed an Audit Committee, with defined and written terms of reference, 21 (1) √
and having the following members as at December 31, 2023: and
21(2)
Professional
Name of Banker Category
Background
Mr. Ahsan Ali Chughtai Independent Director Senior Banker
Mr. Farid Malik Non-Executive Director Business Executive
Mr. Amjad Mahmood Non – Executive Director Additional Finance
Secretary
Mr. Ali Syed Independent Director Business Executive
Mr. Nasim Ahmad Independent Director Senior Banker
33. a) The Chief Financial Officer, the Chief Internal Auditor, and a representative of the 21(3) √
external auditors attended all meetings of the Audit Committee at which issues
relating to accounts and audit were discussed.
b) The Audit Committee met the external auditors, at least once a year, without the √
presence of the Chief Financial Officer, the Chief Internal Auditor and other
executives.
c) The Audit Committee met the Chief Internal Auditor and other members of the
internal audit function, at least once a year, without the presence of Chief Financial
Officer and the external auditors.
34. a) The Board has set up an effective internal audit function, which has an audit charter, 22 √
duly approved by the Audit Committee.
b) The Chief Internal Auditor has requisite qualification and experience prescribed in √
the Rules.
c) The internal audit reports have been provided to the external auditors for their √
review.
35. The external auditors of the Bank have confirmed that the firm and all its partners are in 23(4) √
compliance with International Federation of Accountants (IFAC) guidelines on Code of
Ethics as applicable in Pakistan.
36. The auditors have confirmed that they have observed applicable guidelines issued by 23(5) √
IFAC with regard to provision of non-audit services.

III. Certain additional disclosures, required under the Listed Companies (Code of Corporate
Governance) Regulations, 2019 (The Regulations)
1. The total number of directors are as follows:

a. Male: 07
b. Female: Nil
2. All the powers of the Board have been duly exercised and decisions on relevant matters have been
taken by the Board/ Shareholders as empowered by the relevant provisions of the Companies Act,
2017 as well as these Regulations.
3. The Board have a formal policy and transparent procedures for remuneration of directors in
accordance with the Act and these Regulations.
4. The meetings of the Board were presided over by the Chairman and, in his absence, by a
director elected by the Board for this purpose. The Board has complied with the requirements of
Act and the Regulations with respect to frequency, recording and circulating minutes of the meeting
of the Board.
5. The Board has formed committees comprising of members given below:
a) Board Audit Committee (BAC):
S. No Name of Director Status

1 Mr. Ahsan Ali Chughtai Chairman
2 Mr. Farid Malik Member
3 Mr. Amjad Mahmood Member
4 Mr. Ali Syed Member
5 Mr. Nasim Ahmad Member
b) Board HR & Remuneration Committee (BHRRC):

1 Mr. Ashraf Mahmood Wathra Chairman
2 Mr. Farid Malik Member
c) Board Risk & Compliance Committee (BRCC):

1 Mr. Ahsan Ali Chughtai Chairman
4 The President Member

d) Board Technology & Digitalisation Committee (BTDC):

1 Mr. Farid Malik Chairman
e) Board Inclusive Development Committee (BIDC):

1 Mr. Ashraf Mahmood Wathra Chairman
f) NBP-NY Governance Council (Sub-Committee of BRCC):

1 The President Chairman
2 Mr. Ahsan Ali Chughtai Member
5. The frequency of Meetings (Quarterly/half yearly/yearly) of the Committees were as per

following:
No. of Meetings held

S. No Name of Committees
during the year
a Board Audit Committee (BAC) 11
b Board HR & Remuneration Committee (BHRRC) 10
c Board Risk & Compliance Committee (BRCC) 11
d Board Technology & Digitalization Committee (BTDC) 05
e Board Inclusive Development Committee (BIDC) 02
f NBP-NY Governance Council (Sub-Committee of BRCC) 09
6. The Board has set up an effective internal audit function for both local and overseas
operations. With regards to NBP-USA, Internal audit function of the Bank is outsourced to an
independent professional firm. In addition, audit function in Germany is also outsourced.
Both these audit firms are considered suitably qualified, experienced and conversant with the
policies and procedures of the Bank and all applicable laws and regulations.
7. Chief financial officer and chief executive officer duly endorsed the financial statements before
approval of the Board.
8. The statutory auditors of the Bank have confirmed that they have been given a satisfactory
rating under the Quality Control Review program of the Institute of Chartered Accountants

of Pakistan and registered with Audit Oversight Board of Pakistan, that they and all their
partners are in compliance with International Federation of Accountants (IFAC) guidelines on
Code of Ethics as adopted by the Institute of Chartered Accountants of Pakistan and that
they and the partners of the firm involved in the audit are not a close relative (spouse, parent,
dependent and non-dependent children) of the chief executive officer, chief financial officer,
head of internal audit, company secretary or directors of the Bank;
9. The Statutory Auditors or the persons associated with them have not been appointed
to provide other services except in accordance with the Act, these Regulations or any other
regulatory requirement and the auditors have confirmed that they have observed IFAC
guidelines in this regard.
10. We confirm that all requirements of regulations 3, 6, 7, 8, 27, 32, 33 and 36 of the Regulations
have been complied with except for the following non-compliance:
i) As per regulation 7, it is mandatory that the Board shall have at least one female director
when it is reconstituted after the expiry of its current term. No female director was appointed
on the Board after retirement of Ms. Sadaffe Abid, whose tenure ended on April 16, 2022.
EXPLANATION FOR NON-COMPLIANCE WITH THE PUBLIC SECTOR COMPANIES

(CORPORATE GOVERNANCE) RULES, 2013
We confirm that all other material requirements envisaged in the Rules have been complied with except
for the following, toward which reasonable progress is being made by the Bank to seek compliance by
the end of next Financial Year:
S. Rule/Sub
Reasons for Non-Compliance Future course of action
No Rule No
1 8(1) The performance evaluation of the members of the The Bank is conducting Board Evaluation
Board including the Chairman and the Chief Executive is in line with Regulation G-13 of Corporate
required to be undertaken annually by the Government Governance Regulatory Framework (CGRF)
for which, the Government is required to enter into of SBP. However, a letter has been sent to the
performance contract with each member of the Board Federal Government, communicating the said
at the time of his appointment. Hence the compliance to non-compliance and seeking action thereupon
this provision is primarily attributable to the Government. on part of the Federal Government.
___________________________ _____________________________
REHMAT ALI HASNIE ASHRAF MAHMOOD WATHRA
CEO / President Chairman

REVIEW REPORT TO
THE MEMBERS
A.F. Ferguson & Co. BDO Ebrahim & Co.
Chartered Accountants Chartered Accountants
State Life Building No. 1-C 2nd Floor, Block-C
I.I Chundrigar Road Lakson Square Building
P.O. Box 4716 No.1, Sarwar Shaheed
Karachi – 74000 Road, Karachi – 74200
INDEPENDENT AUDITORS’ REVIEW REPORT
Review report to the Members on the Statements of Compliance with the Listed Companies (Code of Corporate Governance)
Regulations, 2019 and Public Sector Companies (Corporate Governance) Rules, 2013
We have reviewed the enclosed Statement of Compliance with the best practices contained in the Listed Companies (Code of Corporate
Governance) Regulations, 2019 (the Regulations), Public Sector Companies (Corporate Governance) Rules, 2013 (the Rules) (both herein
referred to as ‘Codes’) and Bank (Nationalization) Act, 1974 prepared by the Board of Directors of National Bank of Pakistan (the Bank) for
the year ended December 31, 2023 to comply with the requirements of regulation 36 of the Regulations and the provisions of the Rules.
The responsibility for compliance with the Codes is that of the Board of Directors of the Bank. Our responsibility is to review, to the extent
where such compliance can be objectively verified, whether the Statement of Compliance reflects the status of the Bank’s compliance with
the provisions of the Codes and report if it does not and to highlight any non-compliance with the requirements of the Codes. A review is
limited primarily to inquiries of the Bank’s personnel and review of various documents prepared by the Bank to comply with the Codes.
As a part of our audit of the financial statements we are required to obtain an understanding of the accounting and internal control systems
sufficient to plan the audit and develop an effective audit approach. We are not required to consider whether the Board of Directors’
statement on internal control covers all risks and controls or to form an opinion on the effectiveness of such internal controls, the Bank’s
corporate governance procedures and risks.
The Codes require the Bank to place before the Audit Committee, and upon recommendation of the Audit Committee, place before the
Board of Directors for their review and approval its related party transactions distinguishing between transactions carried out on terms
equivalent to those that prevail in arms’ length transactions and transactions which are not executed at arm’s length price and recording
proper justification for using such alternate pricing mechanism. We are only required and have ensured compliance of this requirement to
the extent of the approval of the related party transactions by the Board of Directors upon recommendation of the Audit Committee. We
have not carried out any procedures to determine whether the related party transactions were undertaken at arm’s length price or not.
Based on our review, nothing has come to our attention which causes us to believe that the ‘Statement of Compliance’ does not
appropriately reflect the Bank’s compliance, in all material respects, with the best practices contained in the Codes as applicable to the
Bank for the year ended December 31, 2023.
Further, we highlight below instances of non-compliance with the requirements of the Codes as reflected in the paragraph reference where
these are stated in the Statement of Compliance:
S. No Reference Description
i Regulation 7 It is mandatory that the Board shall have at least one female director. However, there was no female
director holding the office of Directors during the current year.
ii Rule 8(1) The performance evaluation of members of the Board including the Chairman and the Chief Executive
shall be undertaken annually by the Government. However, no performance evaluation was undertaken of
the above stated personnel.
A. F. Ferguson & Co. BBDO Ebrahim & Co.

Karachi Karachi
Dated: March 4, 2024 Dated: March 4, 2024
UDIN: CR202310068PnOHTeDr0 UDIN: CR202310067bteiZ5Cjp

STATEMENT OF
INTERNAL CONTROL 2023
Reporting of Internal Control System Evaluation of Internal Controls
The Bank’s management has established and is managing a Besides the monitoring of the implementation of internal control
system of internal controls, approved by the Board of Directors, system at the management level, the Bank has an independent
to achieve effective and efficient operations, while complying with Internal Audit function namely the Audit & Inspection Group with
applicable laws and regulations and preserving the reliability of three Area Audit & Inspection Offices that conduct audits of
financial reporting. This internal control system comprises of various Branches, Regions, and Groups at the Head Office on an on-going
interrelated components to gauge the overall control environment. basis to evaluate the efficiency and effectiveness of internal control
These components include the availability of well-documented system. In addition, an Internal Control function is established
policies and procedures and their compliance, risk assessment, under Operations Group for testing & monitoring key controls
identification of risks and mitigating controls, technology breaches, across operations. Adequate compliance systems and processes
information leakages, governance and management reporting. are available to evaluate and assess the adequacy of customers’
onboarding, sanctions screening and transactions monitoring.
The management and the employees at all levels within the
Bank are required to perform their duties as per defined For the year 2023, the management continues its efforts to strengthen
guidelines. The internal control system also requires effective the internal control system of the Bank. The observations made by
and efficient external and internal reporting, maintenance of the external/ internal auditors and regulators in their respective
proper records and processes, operational loss database, audits/ inspections are reviewed and measures are being taken by
compliance with applicable laws and regulations, and internal the management (by respective groups and tracking at management
policies with respect to the conduct of business. The Bank level forums), Board Sub-Committees, and Board of Directors
remains cognizant of its responsibility to continuously improve for rectification of such observations and their non-recurrence.
and strengthen its system of internal control on an ongoing basis.
Based on the results achieved from review of controls by
The Bank has completed the implementation of roadmap regarding management during the year along with, Compliance Group, Internal
Internal Control Over Financial Reporting (“ICFR”) and the Long Form Control Group within Operations, Internal Control over Financial
report on the assessment of the Bank’s ICFR for the year 2022 was Reporting by Financial Control Group and Internal Audit performed
issued by the statutory auditor in compliance with the SBP directive. by Audit & Inspection Group, the management considers that the
Bank’s existing internal control system needs further improvement.
The Bank’s internal control system has been designed to manage This is an ongoing process and management would continuously
rather than eliminate risk of failure to achieve objectives under be evaluating the efficacy of its in-built controls to enhance and
a changing environment. There are inherent limitations in the further strengthen the overall internal control system of the Bank.
effectiveness of any system, including the possibility of human error or Based on the above, the Board of Directors has
system failure, circumvention and overriding of control. Accordingly, endorsed the management’s evaluation of internal
even an effective internal control system can only provide reasonable controls including ICFR in the Director’s report.
assurance with respect to achievement of program objectives.
Haroon Zamir Khan Abdul Wahid Sethi Muhammad Abdul Moeed Imran Farooqui Umer Anwer
Chief Risk Officer Chief Financial Officer Chief Compliance Officer (A) Group Chief Operations Chief Internal Auditor

OUR ETHICS &
CODE OF CONDUCT
It is an obligation on employees of the Bank to be responsible, honest, trustworthy, conscientious and dedicated to the
highest standards of ethical business practices. Our Code of Conduct reflects our commitment to meet the expectations
of our stakeholders and sets the fundamental principles and rules relating to our ethics, conduct and compliance to ensure
integrity. We are committed to conducting our business with honesty and integrity, and expect all our employees to maintain
high standards in accordance with this Code that forms an integral part of the terms of employment of all employees.
Honesty &
Compliance Integrity
We shall continue to comply in letter All our decisions and actions
and spirit with laws, rules and shall continue to be, and seen
regulations of Pakistan and the to be, driven by the utmost
countries where we have level of honesty, integrity and
established our business. fairness by executing right
things in a right way.
Pillars Of
Trust
We shall continue to appreciate and
02 01 Ou
honour the trust bestowed upon us
rC
by our customers and counterparts

in regard to their personal and
od
business information that we

possess.
03
e
CODE OF
Respect the
CONDUCT
Organisation
We respect our organisation
04
through adherence to its by-laws,
rules, policies and procedures, and
by remaining committed to
05
safeguarding Assets, Reputation
and Relations of the Bank.
06
Conflict of Respect
Interest for All
The sole trigger of all our We shall always extend
decisions and actions shall be maximum respect, kindness
to contribute towards success and fairness to all our
of the Bank. We manage our customers, colleagues,
personal, financial and applicants for employment,
business affairs in a manner vendors and
that ensures avoidance, or counterparties.
even appearance, of any
conflict of interest.
Purpose of Code
appropriate behaviour that all employees are required
The Code of Conduct (the “Code”) is to define the to adopt in order to safeguard the reputation enjoyed
commitment that the Bank expects of its employees by the Bank and its subsidiaries, both in Pakistan and
to know in clear terms what acts, conducts and abroad. It also describes, where considered necessary,
practices are considered ethical and clearly describe the the omissions that would be against the Code.

Application of Code • Limited Use of Confidential Information
While recognizing the need for a constant flow of
It is an obligation on us all to be responsible, honest, trustworthy, information for the smooth operation of the Bank, we will
conscientious and dedicated to the highest standards of ethical not disclose confidential information pertaining to our
business practices. Our internally developed Code of Conduct clients’ affairs to our fellow workers within NBP unless
“Code” provides guidance on expected behaviour and explains the they have a clear business need to know the information
effect of decisions that are taken and describes the principles that for the performance of their duties.
must be followed. The Code applies to all employees of the Bank and
its subsidiaries. It applies equally to interns, consultants, agents and • Avoid Conflicts of Interest
service providers who are engaged/retained by the Bank. A copy of As part of our employment responsibilities we act in a
the code is provided to all concerned, so that they know the applicable way that contributes to the financial success of the
provisions and undertake to follow these in the course of their Bank, enhances its reputation and fosters its client
employment and/or business relationship with the Bank. The rules relationships. This requires us to look after our own
set out in this Code are to be applied at all times and in all places when private financial interests in such a way that we do not
carrying out Bank duties, be they of a professional or social nature. profit improperly from our position with NBP.
Compliance with this Code
• Use of NBP’s Computer Systems
If an employee fails to comply with this Code or applicable laws, Utilization of NBP’s computer systems provides an
rules or regulations (including the rules and regulations of the employee access to confidential client information
SBP) he or she will be subject to disciplinary measures, including based on the business/support function(s) being
(with respect to employees) discharge from the Bank. Violations performed. Employees are granted access to the
of this Code may also constitute violations of law and may various computer systems to perform their job duties.
result in civil or criminal penalties for such person, and such Each employee is expected to protect the access
person’s supervisors. The competent authority will determine, or granted to him or her and to keep any associated
designate appropriate persons to determine appropriate actions passwords confidential at all times.
to be taken in the event of a violation of this Code. In determining
what action is appropriate in a particular case, the competent • External Communications
authority or its designee will consider the following aspect. If Only designated Senior Management Officials liaison
appropriate, the relevant external authority would be notified. through Corporate Communications Division are
responsible for NBP’s relationship and communication
Basic Principles of our Code with the press and the general public.
• Act with Honesty and Integrity • Sincerity with NBP/Management and Others
All our decisions and actions shall continue to be, and When we have knowledge of any questionable or
seen to be, driven by the utmost level of honesty, possible illegal act or occurrence involving or affecting
integrity and fairness by executing right things in a right NBP, we have an obligation to report the act or
way. occurrence using means made available by the
Bank for such purpose.
• Comply with the Law
We shall continue to comply in letter and spirit with
laws, rules and regulations of Pakistan and the • Self-Dealing
countries where we have established our business. We are not in any way to represent or exercise any
authority on NBP’s behalf, grant direct or indirect credit
• Treat all with Respect accommodations or make credit recommendations, or
We shall always extend maximum respect, kindness act in the capacity of an account officer with respect to
and fairness to all our customers, colleagues, any type of transaction for ourselves, or members of
applicants for employment, vendors and our immediate family
counterparties.
• Respect the Policies of the Organization
• Conflict of Interest
The sole trigger of all our decisions and actions shall be We are required to be aware of all policies and
to contribute towards success of the Bank. We manage processes which apply to us as employees of NBP.
our personal, financial and business affairs in a manner These policies and processes are issued by the
that ensures avoidance, or even appearance of any authorized officials of NBP, and modifications may be
conflict of interest. enforced from time to time.
• Respect the Organisation • Demonstrate Discipline and Decency

We respect our organisation through adherence to its NBP expects us all to demonstrate discipline in terms
by-laws, rules, policies and procedures; and by of timeliness, punctuality and dress code. We should
remaining committed to safeguarding Assets, devote our full attention and energy to official duties
Reputation and Relations of the Bank. during working hours. Employees are required to
attend at work as required and not to be absent from
• Non-Discrimination duty without authorisation.
NBP will not tolerate discrimination in any form, or any
dishonest, unethical or inappropriate behaviour. The
Bank’s policy is to ensure a harmonious environment • Acceptance of Gifts from Suppliers or Clients
with equal employment opportunity for all, regardless NBP employees are prohibited from giving, seeking or
of age, gender, race, religion, colour, national origin accepting gifts for oneself or any other person anything
and marital status and that client and prospective of value beyond PKR 5,000/- (including services,
clients are not discriminated against on a prohibited discounts or entertainment) from clients, suppliers or
basis. anyone else in return for any business or service from,
or confidential information about NBP.
• Safeguard the Confidentiality of Information
• Borrowing Money from Vendors or Clients
We shall continue to appreciate and honor the trust We are not allowed to borrow money from, or lend
bestowed upon us by our customers and counterparts in money to any of NBP’s vendors or clients. This is
regard to their personal and business information that we strictly prohibited.
possess.

RISK MANAGEMENT
FRAMEWORK
Risk Management Group (RMG) operates as a cohesive and integrated function overseen by the Chief
Risk Officer (CRO). It consists of the Credit Risk Management Group (CRMG), Retail & Program Lending
Group (R&PLG), and Enterprise Risk Management Group (ERMG). Additionally, the group also incorporates
divisions such as the Information Security Division (ISD) and Credit Administration Division (CAD). RMG
functions as an independent group reporting directly to the President with dotted line reporting to the Board.
RMG endeavors to cover all risks that the Bank may be exposed to through:
01 02 03
RISK IDENTIFICATION RISK ASSESSMENT RISK MITIGATION and/or

RISK ACCEPTANCE
Recognizing and Once identified, risks After assessment,
understanding potential are assessed in terms strategies are developed to
risks that could adversely of potential impact and mitigate/minimize impact
impact the Bank’s probability of occurrence. and/or accept risks.
business/operations.
A key objective of our approach to risk management is a robust framework backed by a strong risk culture.
This entails systematic identification and escalation of risks while concurrently supporting sustainable
business growth through judicious risk-reward decisions. The overarching objective of our risk management
strategy is to empower management to identify and assess risks, respond with effective mitigation tools,
and continually monitor the effectiveness of risk response measures. This approach ensures a proactive
and adaptive attitude towards risk contributing to the overall success and sustainability of the organisation.
Understanding Risk and its Impact
The risks encountered by the Bank are primarily categorized into Credit Risk, Market & Liquidity
Risk, Operational Risk, Information Security Risk, Strategic Risk, Reputational Risk and other
risks that hold significant implications for the Bank’s capital. This classification provides a
comprehensive overview of the diverse challenges and uncertainties that the Bank navigates,
allowing for targeted and effective risk management strategies to safeguard its earnings and capital.
Understanding Drivers of Risks
BUSINESS
MARKET ANALYSIS: INDUSTRY ANALYSIS:
ENVIRONMENT
ANALYSIS:
Understanding market Examining factors
conditions, interest specific to the
Assessing the economic,
rate movements, and banking industry,
political, and regulatory
currency fluctuations, such as competition,
landscape to identify
etc., that may affect the technological changes,
factors that may impact
Bank’s financial position. and market trends.
the Bank’s operations.

Understanding Types of Risks
The systematic classification and categorization of different types of risks provides a structured framework
for identifying, assessing, and managing various risks. It also helps in organizing the complex landscape of
risks into distinct categories, making it easier for banks to understand, measure and mitigate potential risks.
• Default Risk: The risk that a borrower fails to meet its financial obligations.
Credit Risk • Concentration Risk: The risk associated with having a significant exposure to a single
borrower, economic group, industry or geographic region.
• Counterparty Risk: The risk of losses due to default of a counterparty in financial transactions.
• Interest Rate Risk: The risk of losses due to changes in interest rates.
Market Risk • Foreign Exchange Risk: The risk of losses due to fluctuations in exchange rates.
• Commodity Price Risk: The risk associated with changes in commodity prices affecting the
value of assets or liabilities.
• Internal Risk: Risks related to activities by employees or internal parties.

Operational • External Risk: Risks related to activities by external parties.
• Technology Risk: The risk of disruptions or losses due to inadequate or failing technology systems.
Risk • Legal and Regulatory Risk: Risks arising from non-compliance with legal contracts, laws, and
regulations.
• Funding Liquidity Risk: The risk that a bank may be unable to meet its short-term
Liquidity funding requirements.
Risk • Market Risk: The risk of being unable to buy or sell assets in the market without significant
price impact.
Reputational • Customer Relations Risk: Risks arising from dissatisfaction or disputes with customers.
• Stakeholder Perception Risk: Risks associated with how the Bank is perceived by investors,
Risk regulators and the public.
Strategic • Business Model Risk: Risks associated with the Bank’s chosen business strategies and models.
Risk • Competitive Risk: Risks arising from changes in the competitive landscape.
Compliance • The risk of failing to comply with laws, regulations and industry standards.
Risk
Environmental • Environmental Risk: Risks associated with the impact of the Bank’s activities on the environment.
& Social Risk • Social Risk: Risks related to the Bank’s social responsibility and impact on society.
• Risk associated with the use of models for decision-making, including inaccuracies or
Model Risk limitations in the models.

Understanding Impact of Risks human resources, organizational culture, practices
and systems are in place to effectively manage and
Quantitative Impact Assessment: mitigate such risks. The following are key risk-related
Employing quantitative models to measure the committees at both the board and management
potential financial impact of various risks on the levels, established to facilitate robust implementation
bank’s capital and earnings. and oversight of risk management practices.
Scenario Analysis: Board Risk & Compliance Committee

Evaluating the impact of specific scenarios or events
on the Bank’s financial health. The Board Risk and Compliance Committee (BRCC)
serves as the pinnacle of risk oversight, acting on
Sensitivity Analysis:
behalf of the Board to conduct risk management
Assessing how changes in key variables (interest
activities. As the paramount policymaking and
rates, exchange rates, etc.) may affect the Bank’s
supervisory entity for all risk categories confronted
performance.
by the Bank, including credit, market, liquidity,
Stress Testing: operational and other risks with potential material
Subjecting the Bank’s position to extreme scenarios impact on the Bank’s performance, BRCC plays a
to evaluate its resilience under adverse conditions. pivotal role. Its primary function involves enhancing
the risk culture within the institution through rigorous
Risk Mitigation and Controls evaluations of diverse risk policies, procedural
manuals and Management Information Systems (MIS).
Implementing measures to mitigate identified risks,
including setting risk limits, developing risk policies and Enterprise Risk Committee
procedures, and establishing control mechanisms.
Regularly monitoring and updating risk mitigation The Enterprise Risk Committee (ERC) functions
strategies based on changes in the risk environment. as a senior management committee, featuring
representation from pertinent business and support
Communication and Reporting units. This committee assumes responsibility for
overseeing the implementation of the risk management
Regularly communicating risk information to the framework, adopting an integrated and enterprise-
board, senior management and relevant stakeholders. wide perspective. Its key areas of focus include the
formulation of risk strategy, the development of policies
Providing clear and concise reports on the Bank’s and procedures, evaluation of risk management
risk profile, risk exposure, and the effectiveness of tools, Management Information Systems (MIS)
risk mitigation measures. reporting and the escalation of significant matters to
the Board Risk and Compliance Committee (BRCC).
By thoroughly understanding the drivers, types, Moreover, other relevant committees, such as
and impact of risks, the Bank can make informed Asset Liability Committee (ALCO) and Management
decisions, set appropriate risk appetites and Credit committee (MCC) etc. are responsible to
implement effective risk management strategies ensure the formulation and implementation of
to protect its financial stability and reputation. This a comprehensive risk management framework.
understanding is crucial for the proper functioning
of the risk governance and oversight structure. Management Credit Committee
Risk Governance and The Management Credit Committee (MCC) operates
Oversight Structure as a senior management committee with a primary
mandate of assessing and reviewing credit exposures,
The Board assumes the responsibility of providing counterparty/borrower limits, and credit policies and
diligent oversight in the implementation of risk- procedures. These responsibilities align with the
related policies, frameworks and procedural manuals guidelines outlined in the Credit Approval Authority
to proactively mitigate the potential for substantial Booklet (CAAB) and the Credit Policy Manual. The
financial losses or diminished shareholder value within authority for these functions is delegated by the
the Bank. Consequently, the Board is committed Board Risk & Compliance Committee/Board of
to establishing and maintaining comprehensive Directors. Notably, the Chief Risk Officer (CRO) and
policies and frameworks that identify and address all Chief Credit Officer (CCO) serve as integral members
significant or material risks inherent to the Bank. This of the committee, ensuring a robust participation of
commitment extends to ensuring that the necessary risk considerations in the decision-making process.
Asset Liability Committee
The Asset and Liability Management Committee (ALCO) holds the responsibility for overseeing and managing
the composition and pricing of both assets and liabilities of the Bank. This includes off-balance sheet items, with
the overarching goal of achieving outcomes that align with liquidity, capital adequacy, growth, profitability and
predefined risk appetite/tolerance objectives. ALCO plays a critical role in ensuring a strategic balance within the
Bank’s financial structure, harmonizing various elements to achieve optimal results across key operational areas.
Risk Management Framework Implementation
The implementation of the risk management framework at the Bank follows a ‘Three Lines of
Defence’ model. This model delineates distinct lines of responsibility and accountability across the
organization, ensuring effective, independent oversight and assurance that activities occur as intended
within the risk management framework. The three lines of defence in this model typically include:
1ST LINE OF DEFENCE 2ND LINE OF DEFENCE 3RD LINE OF DEFENCE
The business groups bear the The Risk Management and The Board Audit Committee and
foremost responsibility for Compliance functions within the the Audit & Inspection Group
identifying, measuring, monitoring Bank have the responsibility to collectively deliver independent and
and exercising control over risks objective assurance and consulting
oversee and independently assess
within their designated areas of
the effectiveness of risk management activities aimed at enhancing the
accountability. It is mandatory
for them to establish and enforce actions undertaken by business value and efficacy of the Bank’s risk
effective procedures and controls, groups. These assessments are management function. The Audit &
ensuring strict adherence to pertinent further subjected to evaluation at Inspection Group contributes to the
policy requirements. Furthermore, management level committees. realization of the Bank’s objectives
these business groups must Subsequently, the recommendations by employing a systematic and
consistently uphold and enhance are either approved or escalated disciplined approach to assess
their proficiency in risk management to the Board’s sub-committees in and enhance the effectiveness of
skills. Their actions are expected to risk management, control, and
accordance with SBP requirements,
align with the parameters set and
where they undergo further governance processes. Their
approved by the Board, fostering a
comprehensive and compliant risk deliberation prior to a decision being collaborative efforts are designed
management approach. taken. This structured approach to fortify the Bank’s overall risk
ensures a thorough examination of management framework and promote
risk management activities, aligning robust governance practices.
with regulatory standards and
promoting informed decision-making
at the highest levels of governance.

Clear Responsibilities and Accountabilities
Each line of defence has well-defined roles and responsibilities, ensuring clarity in the execution of risk
management activities.
Independent Oversight
Independence is maintained between the first, second, and third lines of defence to enhance objectivity and
impartial evaluation of risk management practices.
Assurance of Activities
The model ensures that activities are conducted as intended under the risk management framework, providing
assurance to stakeholders.
Continuous Improvement
The model supports continuous improvement by allowing for feedback and adjustments to risk management
processes based on the insights provided by each line of defence.
The Risk Management Group (RMG) defines its mission as the maximization of stakeholders’ value through
sustainable growth, which is realized by informed risk decision-making and superior risk and capital
management. This is reinforced by fostering a consistent risk-focused culture throughout the Bank. Aligned
with our approach to risk management, the Board has endorsed several policy documents that establish the
parameters essential for achieving effective risk management. These policies serve as the foundation for
maintaining a robust risk management framework within the organization.
Risk Management Approach
The Bank adopts the Basel framework as a fundamental element of NBP’s risk management framework and
guides its capital and liquidity strategies. This approach underscores the Bank’s dedication to upholding
a robust capital, funding and liquidity position, in accordance with its ongoing commitment to maintaining
the strength of its balance sheet. By aligning with the Basel framework, the Bank seeks to enhance the
effectiveness of its risk management practices and fortify its financial resilience.
Bank’s risk management objectives are to:
• Identify and Assess Significant Risks
Systematically identify and assess risks that could have a substantial impact on the Bank’s operations,
ensuring a comprehensive understanding of potential threats.
• Timely Response and Risk Appetite Formulation
Provide a prompt and well-considered response to identified risks by formulating the Bank’s risk
appetite. This involves establishing clear parameters and thresholds for risk-taking in alignment with
organizational objectives.
• Equip the Bank with an Appropriate Risk Management Architecture for Effective Risk Management
Implement tools and models that form a robust architectural framework, facilitating effective risk
management across the organization. This includes deploying sophisticated systems to identify,
measure and mitigate risks.

• Analyze the Overall Risk Profile
Conduct comprehensive analyses of the Bank’s overall risk profile, taking into account various risk
factors and their interplay. This involves assessing the collective impact of risks on the Bank’s financial
health.
• Keep Track of Emerging Risks
Stay vigilant to emerging risks by actively monitoring the external environment and industry trends.
Actively engage in the identification, assessment, and mitigation of potential risks that may arise in the
future.
• Perform an Active Role in Risk Mitigation
Play an active role in mitigating risks by implementing proactive measures, such as developing and
enhancing risk mitigation strategies, ensuring that the Bank is resilient in the face of potential
challenges.
• Managing Information Security Risk
Information security risk is managed through a well established information security policy and risk
management/cybersecurity frameworks that cover IS Risk Management, IS Program Management,
IS Security Operations & Threat Management, Network & Infrastructure Security, Application &
Database Security, and IS Governance & Compliance.
By addressing these objectives, the Bank has established a comprehensive and dynamic risk
management approach, ensuring a proactive stance towards risks, promoting strategic alignment,
and safeguarding the institution’s overall stability and success.

IT GOVERNANCE &
CYBER-SECURITY
IT Governance
BOARD OF DIRECTORS
Board Technology &

Board Risk Committee Board Audit Committee
Digitalization Committee
Chief Executive Officer
Technology & Digitalization

Executive Committee Chief Technology Officer Chief Risk Officer Chief Digital Officer Chief Compliance Officer
Steering Committee
Expense Approval IT Strategy, Risk & Chief Information Digital Governance

Committee (EAC) Governance Security Officer
Digital Channels and
Technology Infrastructure Payment
Core Banking Data Analytics & Insights
IT Operations Digital Banking Strategy
Digital Transformation
IT Systems & Solutions
Government Digital
Digitalisation of Product & Program
Processes
People, Culture
IT Transformation & Development & Business
Modernization Admin
In today’s dynamic digital economy, the importance an evolving technological environment. IT

of IT Governance and Management cannot Governance of the Bank comprises monitoring by:
be overstated. It ensures that investments in
IT, both current and future, are in line with the NBP Board of Directors:
organization’s business objectives and risk tolerance.
Consequently, the banking sector’s IT landscape The NBP board oversees business conduct and
is also rapidly evolving, necessitating a focus on: supervises management, committed to upholding
the highest standards of corporate governance.
Responsibilities include ensuring integrity and
• Maximizing the business value derived from compliance with laws and regulations. The CEO
IT investments and senior management execute operations
according to approved plans and policies, presenting
• Achieving operational excellence through significant matters to the Board or its Committees
reliable, scalable and maintainable for consideration. Sub-committees monitor and
technology solutions control various areas of the Bank. The Board’s
• Managing IT-related risks within acceptable Technology & Digitalization Committee oversees
thresholds IT network and security projects to address the
legal and regulatory implications of cyber risks.
• Ensuring accurate and relevant data is
available for data-driven strategic decision- Board Technology & Digitalisation
making Committee (BTDC):
• Ensuring compliance with an evolving The NBP Board has set up a dedicated sub-committee
regulatory and legal environment tasked with supervising technology operations and
digital ventures within the bank. This Committee
• Maximizing cost efficiency in IT services and advises management on IT risk strategies to enhance
technology. resilience and response capabilities, particularly
in addressing cyber incidents and wide-scale
This strategic shift underscores the importance of disruptions. Recognizing the heightened significance
integrating IT strategies with broader organizational of technology-related risks, the BTDC prioritizes
objectives, ensuring alignment and agility in

enhancing governance and fostering collaboration respond to, and often anticipate developments in a
with senior executives to effectively manage risks and rapidly changing landscape. The ongoing strategy of
maintain a robust IT risk profile. The Committee ensures recruiting new talent with specific IT skills helps bridge
consistent updates on IT network enhancements, any gaps in expertise and capabilities, while resource
security measures, and all ongoing IT projects. augmentation remains a continuous process at the Bank.
Chief Executive Officer (CEO): Chief Information Security Officer (CISO):
The NBP CEO supervises corporate functions CISO is responsible to ensure that cybersecurity
across all businesses and subsidiaries, providing procedures and policies are communicated
reports on bank activities to the board and relevant to the management. Also, CISO has to ensure
committees as requested by their respective that the management enforces compliance with
chairs. The CEO holds the primary responsibility Information Security and related policies. In the
for managing the bank’s operations and affairs, case of security breaches, the CISO is responsible
offering leadership and vision to enhance profitability for reviewing the incidents and assessing the
and shareholder value while ensuring adherence impact of the incident to give recommendations
to corporate policies established by the board. on how to avoid such vulnerabilities in the future.
Chief Technology Officer (CTO): Chief Digital Officer (CDO):
The Information Technology Group, led by the Chief The Chief Digital Officer is responsible for overseeing the
Technology Officer (CTO), serves as the backbone Bank’s adoption of digital technologies, transforming
of the Bank, delivering round-the-clock support for business strategy via the use of technology and
connectivity, servers, applications, and network and data, and evangelising how people, processes, and
security infrastructure. The NBP CTO oversees crucial technology can achieve the digital vision. The CDO
IT capability decisions to enhance management, ensure is largely accountable for transforming the overall
compliance, and maximize value from technology business model and introducing a digital dimension to
resources. Central to the CTO’s role is establishing the Bank’s operations. CDO is vigorously embracing
robust IT governance, which involves understanding the newest digital technologies, such as cloud
the impact of IT decisions on business value. computing, data analytics, etc., and has established a
dedicated division to enhance transparency, reporting,
IT Strategy, Risk & Governance (IT SRG): and governance in the digital domain. CDO is working
on NBP’s long-term strategy, which includes the
An exclusive IT Governance domain is defined under deployment of robotic process automation, AI-
the supervision of the CTO by the name of IT Strategy, based decision making in lending-based business
Risk & Governance Division that is specifically and cross-selling, and the implementation of block
responsible to prepare, review and implement IT- chain technology for the expansion of digital banking
related policies, incident response, and controlling footprints in NBP. To meet NBP’s long-term, mid-
planning for IT governance. The division is managing term, and short-term ambitions, the CDO keeps Ex
technology programs and operations and proposes Com and BTDC updated of the latest digital domain
strategic IT initiatives to ensure that IT operates within developments and projects on a regular basis.
budget while meeting targets. The Division has also
established policies and procedures for implementing Digital Governance:
controls in each area of ITG. Additionally, IT Network
Security assessment was also conducted to further Under the leadership of the CDO, the Digital
improve the cybersecurity posture of the Bank. Governance domain is pursuing and executing
the process governance for horizontal policies to
Concerning continuous learning and development, implement internal controls, ensure compliance with
IT SRG implements a program that endeavours to all internal and regulatory mandates, and ensure that
educate all employees by organizing awareness and all processes & procedures are flawless for instant
training sessions on Cyber Security. Key training audit. The Digital Governance Division is responsible
topics such as Zero-Trust Architecture, Software for the execution of all digital banking-related
Defined Networks, Service Oriented Architecture, policies, regulatory requirements, SOPs, and SLAs.
Cybersecurity fundamentals, Project Management,
Security Analyst, and others are delivered to ITG
employees to ensure they remain up-to-date with
the latest trends and technologies. Furthermore, ITG
employees are encouraged and assisted in obtaining
relevant specialized certifications to ensure they
remain current enabling them to effectively assess,
FINANCIAL OVERVIEW
Net Interest Income Non Mark-up Income Total Income
PKR Bn PKR Bn PKR Bn
40.6
168.7 36.9 36.7 209.4
153.5
116.8
97.6 134.6
2021 2022 2023 2021 2022 2023 2021 2022 2023
During 2023, average policy rate remained at 20.69% compared Despite a generally lower economic activity during the year, the
to 13.2% of last year. This translates into increase in average Bank achieved 10.7% growth in its non-fund income stream by
policy rate by 751bps. The Bank earned a gross mark-up/ interest generating a non-mark-up income of PKR 40.6 Bn (2022:PKR
income of PKR 1,024.6 Bn 103.6% YoY). Net interest-bearing 36.7 Bn.) Non-markup income constitutes 19.4% of the total
assets during the period averaged at PKR 5,320.2 Bn (+36.84% income (Dec ‘22: 23.9%). Suppressed international trade volumes,
YoY) . Interest-bearing investment portfolio averaged 48% up at decreased the foreign exchange income by 4.2% YoY to PKR 7.1
PKR 3,904.4 Bn (Dec ‘22 : PKR 2,631.7 Bn) and generated interest/ Bn (Dec ‘22: PKR 7.4Bn). Branch banking operations continued
mark-up income of PKR 774.0 Bn (122.2% YoY), making 75.5% generating healthy fees & commission income that closed at PKR
of the total mark-up income. Average loans and advances (net) 22.0 Bn (4.2% YoY). Dividend income increased by 1.0% to PKR
increased by 15.9% to PKR 1,306.8 Bn (2022: PKR 1,145.5 Bn) 5.2 Bn as companies resorted to paying dividends. These gains
and generated mark-up/interest income of PKR 221.8 Bn, which were further supported by higher gain on securities that amounted
compared to PKR 141.4 Bn levels of 2022, is higher by 56.9%. to PKR 4.4 Bn (Dec ‘22: PKR 1.1 Bn). Accordingly, the non-mark-
Average interest-bearing liabilities increased by 36.1% to PKR up/interest income of the Bank totalled PKR 40.6 Bn, as against
5,267.8 Bn . Therefore, the Bank’s cost of funds also increased PKR 36.7 Bn of the last year.
to PKR 855.9 Bn (121.5% YoY), of which PKR 365.1 Bn (Dec ‘22:
PKR 209.6Bn) was on account of profit to the depositors. The Net interest income and Non-interest income collectively generate
Bank’s cost of deposits increased by 445bps to close at 12.3% PKR 209.4 Bn during the year.
for 2023 (2022: 8.0%). Overall, the Bank’s net mark-up/ interest
income closed at PKR 168.7 Bn, which is 44.4% higher against
PKR 116.8 Bn earned during the prior year.
Operating expenses for the year closed at PKR 93.6 Bn against PKR 78.2 Bn for
OPEX
the year 2022. HR compensation that accounts for 60.2% of the total operating
expenses amounted to PKR 56.4 Bn compared to PKR 48.8 Bn for the year 2022. PKR Bn
93.6
Resultantly, the Bank’s operating Cost to Income ratio stood at 44.7%, against
7.3
50.9% for the prior year. 78.2 12.2
5.1
60.0 10.7 17.8
The Bank invests appropriate funds in the uplift and maintenance of its business 3.1
13.5
8.4
premises, providing a secure & healthy work environment to its workforce and 11.1
50.9%
customers. This year we spent a sum of PKR 1.5 Bn on repair and maintenance of 44.7%
our business premises. Overall property-related expenses amounted to PKR 12.2 44.6%
Bn, which is 13.7% more than the prior year. Since Information Technology is pivotal 37.0 48.8 56.4
for the Bank to achieve its strategic goals, The Bank continue to invest in upgrading 2021 2022 2023
its IT infrastructure, systems, and applications architecture. In 2023, we spent PKR HR Property IT Oth. Cost to Inc.
2.8 Bn on software maintenance and PKR 0.9 Bn on Network enhancement.

Provision Profit Before Tax Tax
14.5
PKR Bn 0.6 PKR Bn PKR Bn
12.6
11.9 0.7
0.1 101.3 49.4
11.9 14.5
62.7 32.3
8.1 13.4
52.9
11.1 24.9
3.8
0.7 0.5
2021 2022 2023 2021 2022 2023 2021 2022 2023
Inv Loans Other
Pre-tax profit for the year amounted to PKR 101.3 Bn i.e. 61.4% higher YoY against PKR 62.7 Bn of 2022. Tax charge amounted to PKR
49.4 Bn, translating into an effective tax rate of 48.8% (2022: 51.5%).
Profit AfterTax Earnings Per Share

Profit after-tax for the year 2023
closed at PKR 51.84 Bn i.e. 70.5% PKR Bn PKR
above the PKR 30.4 Bn in 2022.

51.8 24.4
This translates into Earnings Per
Share of Rs. 24.37 as compared to
Rs. 14.29 in the corresponding year. 30.4
14.3
Significant growth is achieved in 28.0 13.2
profit before provisions, partially off-
set by higher provisions charge and
higher tax. Net assets increased by
PKR 81.9 Bn to PKR 382.8 Bn. 2021 2022 2023 2021 2022 2023
Profit & Loss 2023 (Rs. Bn) PAT - YoY Reconciliation

1024.7
51.9 3.9
(15.2) (1.9) (0.2) 51.8

(17.1)
30.4
40.6
(49.4) 51.8
(855.9) (93.6) (14.5)
GII Int. Exp. NFI OPEX Prov. Tax PAT PAT’22 NII NFI OPEX Prov. Oth. Tax PAT’23
Our performance remained strong as we continued to create Significant growth is achieved in

growth opportunities for the Nation through uninterrupted profitability, partially off-set by higher Opex.
delivery of services to our customers. Financial results for the
year 2023 reflect our resilience to challenging environment
amidst high inflation and interest rates that has created
difficulties for some of our customers.

Balance Sheet Strength
Balance sheet strength is critical to the Bank’s ability to serve its customers,
+27%
drive core business outcomes and deliver strong & sustainable returns for the
stakeholders. Our capital, liquidity and funding metrics have strengthened further
during FY’23. The strength of our balance sheet means the Bank is well-positioned
to support its customers and the Pakistani economy through challenging and
uncertain times.
Assets
Total Assets RoA - Pre Tax
PKR Bn
%
6,653 As of December 31, 2023, total assets 1.7
852 of the Bank amounted to PKR 6,652.70 1.5
5,240 1.4
533 1,398 Bn, which is 26.9% more from PKR
3,847 1,230 5,240.4 Bn at the end of 2022. The
795 Bank has managed its overall asset-
1,114 liability mix by generating stable funds
4,403
3,477 and deploying the same into earning
1,938 avenues offering positive yield.
2021 2022 2023

2021 2022 2023
Inv Adv.(net) Oth
Advances - Gross
Loans and Advances
PKR Bn
At Dec-2023, gross loans & advances of the Bank amounted to PKR

1,631.7 Bn depicting a 13.4% prudent increase from the year end 1,631.7
2022 levels. The loan book is diversified over 30+ sectors. Private 1,438.6
and Public sector constitute 60.5% (2022: 65.3%) and 39.5% (2022: 1,305.2
34.7%), respectively. With PKR 210.4 Bn, Individuals make 12.9% of
the loan book whereas Power makes 11.8% share and PKR 191.9 Bn
in outstanding loans, followed by 10.6% of the Textile sector where the
exposure increased by 4.64% YoY to reach PKR 172.8 Bn. Oil & Gas
also recorded 74.6% growth to reach PKR 311.9 Bn from PKR 178.7Bn
in 2022. In line with the Bank’s refreshed vision of inclusive development,
healthy growth was also achieved in Commodity and Agriculture & Allied
2021 2022 2023
sectors. These 4 major sectors make almost 56.1% of the total loan book
with PKR 902.5 Bn in outstanding.
Infection Ratio
15.2
With PKR 220.8 Bn of NPLs at end of 2023, net loans & advances 14.3
amounted to PKR 1,398 Bn i.e. 13.6% up from PKR 1,230.5 Bn level at
13.5
end 2022. Given the focused decline in deposits and a prudent growth
in advances, the Bank’s Advances-to-Deposits Ratio (gross) declined
from 54.0% at the end of Dec’22 to 44.4% at end Dec’23. Business
groups that contributed towards YoY growth in advances include C&IBG
(+PKR 112.4Bn), IDG (+PKR 29.9 Bn), RBG (+PKR 14.3 Bn), and AIBG
(+PKR 27.6 Bn), etc
2021 2022 2023

Investments
Investments - net
At the end of 2023, the Bank’s investments (at cost) amounted to PKR
PKR Bn
4,393.9 Bn (YE’22: PKR 3,509 Bn), making over two-third of the Bank’s
balance sheet. Given the limited quality loan-growth opportunities, and a 4,403.4
constant growth in the customer deposits, excess liquidity with the Bank
is placed in shorter term GoP securities to capitalize on price volatility in 3,477.4
the hiking policy rate environment. The PKR 884.9 Bn or 25.2% increase
in investments (at cost) mostly came in T-Bills that increased by PKR 97.4
Bn from PKR 880.5 Bn at the YE’22 to PKR 977.9 Bn at end Dec’23.
PIBs increased by PKR 744.7 Bn from PKR 2,409.5 Bn at the YE’22 to
1,938.2
PKR 3,154.2 Bn at end Dec’23. As the market opportunity offered decent
spread, investments were funded through deposit mobilization as well as
leveraging
2021 2022 2023
PKR 51.7 Bn of investment in listed companies is a diversified portfolio
in 30+ sectors with highest concentration in commercial banks (19.3%),
followed by Oil & Gas downstream (11.0%), Cement (7.1%) Power
(5.6%), and Oil & Gas upstream (5.7%).
Deposits / CASA
Deposits
PKR Bn
The Bank has established an unparalleled outreach to a wide range of
3,674.4
core depositors throughout the country. As the Bank enjoys depositors’
utmost trust, most of our deposits are ‘stable funds’ coming from core 3,019.2
customers. During the year, the Bank followed a focused strategy to
2,666.2
78.8%
optimize its deposits to deliver higher PAT to its stakeholders. Deposits
increased by PKR 1,008.2 Bn and amounted to PKR 3,674.4 Bn, which is
82.3%
37.8% higher than PKR 2,666.2 Bn, at the end of year 2022. Customers’
deposits as of Dec’23 amounted to PKR 3,166.6 Bn, representing 86.2% 79.4%
of the total deposits. Total current deposits (including FI’s) stood at PKR
1,970.5 Bn, depicting a 50.4% increase YoY. Also, the saving deposits
increased by 14.5% to PKR 924.3 Bn, as compared to PKR 807.4 Bn a
2021 2022 2023
year back. The bank’s CASA deposits decreased slightly from 79.4% in
Deposits CASA
December 2022 to 78.8% as of December 31, 2023.
Funding & Liquidity Liquidity Coverage
%
The Bank’s liquidity and funding profile are sound as the vast bulk of
assets are funded by a large and stable customer deposit base which 176.2
continued to grow strongly. 164.0
The majority of the Bank’s funding comes from core customer deposits
147.3
that contribute 86.2% (PKR 3,166.6 Bn) of the Bank’s total deposits.
Compared to Dec 31, 2022 level, customer deposits have increased by
PKR 549.7Bn or 21.0%. FI deposits, increased during the period under
review by PKR 458.4Bn and closed at PKR 507.8 Bn (Dec’22: PKR
49.4Bn).
The Bank’s liquidity coverage ratio stood at 176%, and the Net Stable 2021 2022 2023
Funding Ratio stood at 259%, well above the statutory requirement

of 100%.

Capital Strength and Adequacy
The Bank has been identified by the SBP as Domestic Systemically Important Bank ‘DSIB’. Therefore, the Bank is required to maintain
minimum CET-1 at 10% and Total CAR at 14%.
During 2023, the Bank’s Eligible Tier 1 capital increased by PKR 52.1 Bn or 22.5% from PKR 231.2Bn at YE’22 to PKR 283.3Bn at the end
of 2023. Likewise, Eligible Tier 2 capital also increased by PKR 18.4Bn or 24.5% to close at PKR 93.4Bn at year end 2023. Tier 2 capital
eligible component increased corresponding to increase in total Tier 1 capital. Whereas total RWAs increased moderately by PKR 60.4Bn
or 4.3% from PKR 1,418.5Bn at YE’22 to PKR 1,478.9Bn at end Dec’23. Accordingly, Total Capital Adequacy Ratio (CAR) improved to
25.47% (2022: 21.59%). with Tier-1 capital adequacy ratio at 19.16% (2022: 16.30%). Leverage ratio of 3.0% was introduced in response
to the Basel III accord as a regulatory minimum. At the year-end 2023, the Bank’s leverage ratio was at 3.12% (2022: 3.08%).
Financial soundness indicators of the Bank have improved significantly in recent years and have resulted in the Bank being in a much
stronger position. Retaining the profit has added to the Shareholders’ wealth through higher book value per share, which has increased
27.2% from PKR 141.4 per share at the end of 2022 to PKR 179.9 per share at the end of December 2023. Key financial soundness
indicators of our Bank are as follows.
Total Capital CET 1 CAR
PKR Bn % %
376.7 19.16
25.47
21.59
306.2 16.30
93.4 15.42
20.39
264.1
75.0
64.3
199.8 231.2 283.3
2021 2022 2023 2021 2022 2023 2021 2022 2023

Tier-1 Tier-2
Capital soundness at December 31,2023 Movement in RWAs(PKR Bn)

Capital Actual Required Buffer(bps) RWA Type Dec’23 Dec’22 Change
CET1 19.16% 10% 916 Credit 1,053.1 1,066.2 (13.1) (1.2)%
CAR 25.47% 14% 1,147 Market 121.3 93.6 27.7 29.6%
Leverage 3.12% 3% 12 Operational 304.5 258.7 45.8 17.7%
Total RWAs 1,478.9 1,418.5 60.4 4.3%
CAPITAL ADEQUACY PKR “Bn”
Financial performance 2023 2022 2021 2020 2019 2018

Total Eligible Tier-1 Capital 283 231 200 173 143 125
Eligible Tier-2 Capital 93 75 64 55 40 44
Total Eligible Capital (Tier-1 + Tier-2) 377 306 264 228 183 169
Risk Weighted Assets

Credit Risk 1,053 1,066 984 858 914 796
Market Risk 121 94 82 88 92 81
Operational Risk 305 259 229 207 174 155
Total Risk Weighted Assets 1,479 1,418 1,295 1,153 1,179 1,032
Capital Adequacy Ratio

Total Eligible Capital 377 306 264 228 183 169
Total Risk Weighted Assets 1,479 1,418 1,295 1,153 1,179 1,032
Capital Adequacy Ratio 25.47% 21.59% 20.39% 19.78% 15.48% 16.35%

MINIMUM CAPITAL REQUIREMENT
Minimum Capital Requirement (PKR Bn) 2023 2022
Paid-up capital 21.3 21.3
Capital Adequacy Ratio

Eligible Common Tier-1 (CET-1) Capital 283.3 231.2
Eligible Additional Tier 1 (ADT 1) Capital - -
Total Eligible Tier 1 Capital 283.3 231.2
Eligible Tier-2 Capital 93.4 75.0
Total Eligible Capital (Tier-1 + Tier-2) 376.7 306.2
Risk Weighted Assets

Credit Risk 1,053.1 1066.2
Market Risk 1,21.3 93.6
Operational Risk 304.5 258.7
Total Risk Weighted Assets 1478.9 1418.5
Common Equity Tier 1 Capital Adequacy Ratio 19.16% 16.30%

Tier 1 Capital Adequacy Ratio 19.16% 16.30%
Total Capital Adequacy Ratio 25.47% 21.59%
The full disclosure on the Capital Adequacy, Leverage Ratio and Liquidity Requirements as per SBP instructions issued from time to
time, is available on NBP’s website. The link to the full disclosure is available at https://www.nbp.com.pk/blsd/
Shareholders’ Value 2023 2022 2021

Net Asset (PKR Bn) 382.8 300.8 286.2
Break-up Value per Share(Rs.) 179.9 141.4 134.5
RWAs
1,479
PKR Bn
1,419
1,295 305
1,179 259
1,153 229
1,032 94
173 207 121
155 92 82
81 88
796 914 858 984 1,066 1,053
16.35% 15.48% 19.78% 20.39% 21.59% 25.47%
2018 2019 2020 2021 2022 2023

Credit RWA Market RWA Operational RWA CAR - %

PKR 1,065 BN TO
OUR STAKEHOLDERS
VALUE CREATION AND DISTRIBUTION PKR “Bn”
Economic Value Generated 2023 % 2022 %

Mark-up / Interest Income Earned 1,024.7 96% 503.3 93%
Non Mark-up / Interest Income Earned 40.6 4% 36.7 7%
Total Value Generated 1,065.3 100% 540.0 100%
Economic Value Distribution 2023 % 2022 %
Providers of Funds: Profit / Mark-up on Deposits, borrowings, etc. 855.9 80.3% 386.5 71.6%
Suppliers: Payments made for the provision of utilities, goods and services 34.0 3.2% 26.4 4.9%
Employees: Salaries, superannuation contributions and incentives 56.6 5.3% 48.9 9.1%
Society: Donations & CSR 0.05 0.0% 0.1 0.02%
Government: Income Tax 49.4 4.6% 32.3 6.0%
Others: 0.3 0.0% 0.07 0.0%
Expansion & Sustainability:
Depreciation / Amortization 2.7 0.3% 2.7 0.5%
Provision against non-performing assets 14.5 1.4% 12.6 2.3%
Value Retained 51.8 4.9% 30.4 5.6%
Total Economic Value Distributed 1,065.3 100% 540.0 100%
6.5% 8.5%
4.6% 6.0%
5.3% 9.1%
3.2% 4.9%
2023 2022
80.3% 71.6%
Providers of funds Suppliers Employees Government Expansion & Sustainability

Quarterly Performance
Net interest income ‘NII’ for Q1 ‘23 amounted to PKR 32.5

Bn depicting a drop by 10.3% as compared to Q4 ‘22
reflecting the seasonal positive impact usually observed in
Gross Intrest Income Net Interest Income
Q4 of the year. For the Q2 ‘23, NII amounted to PKR 40.6Bn,
PKR Bn PKR Bn
47.4 48.2
i.e. 24.9% up as compared to the previous quarter and
296.4 296.0 40.6
239.9 36.2
48.73% as compared to quarter 2 of 2022. This is mainly
192.4 32.5
171.1 27.5 due to increase in policy rate i.e. 20.69%. NII for the Q3
152.8 25.8 27.3
100.2
‘23 amounted to PKR 47.4 Bn with an increase of 16.7%
79.2
as compared to the previous quarter and show an increase
of 72.5% as compared to the corresponding quarter of
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
last year. Net interest income for the Q4 ‘23 amounting
2022 2023 2022 2023
to PKR 48.2 Bn, i.e. 1.67% more as compared to the
previous quarter. However, this was 33.0% higher than the
corresponding quarter last year.
Non Interest / Mark-up Income Non Mark-up Income

Non-interest income for the Q1 ‘23 amounted to PKR 7.5’Bn, reflecting 34% decrease,
PKR Bn 15.9
as compared to the previous quarter due to less deposits during the quarter. Non-interest
income for the Q2 ‘23 amounted to PKR 11.5’Bn i.e. 53.7% up as compared to Q1’23 11.5
11.4
mainly due to increase deposits and increase by 12.4% than the corresponding quarter 10.3
8.1 7.5
last year. Non-interest income for the Q3 ‘23 amounted to PKR 5.7’Bn i.e. 50.7% down 7.0
as compared to the previous quarter. Non-interest income for the 4th quarter amounted 5.7
to PKR 15.9 Bn which is 179.8% up as compared to the previous quarter and 40.0% as
compared to the corresponding quarter last year, which is mainly due to an increase in
dividend and foreign exchange income. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2022 2023
Operating Expenses
OPEX
28.2 Due to inflationary pressure and geo-political tensions resulting in an
PKR Bn
23.4 increase in commodity prices particularly of oil & gas and food which
21.2 22.9 21.3
ultimately had an adverse impact on operating expenses of Bank.
19.1 18.9
Operating expenses of Q1‘23 amounted to PKR 21.2’Bn, reflecting
16.8
10% decrease, as compared to the previous quarter. For the Q2 ‘23,
operating expenses amounted to PKR 22.93’Bn which is 8.4% higher,
as compared to Q1’23 and 20.14% higher against the Q2‘22. Operating
expenses for the Q3‘23 decreased to PKR 21.3’Bn, slightly lower by
6.9% as compared to the previous quarter. For the 4th quarter operating
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
expenses amounting to PKR 28.2 Bn showing an increase of 32.1% as
2022 2023
compared to Q3’23 due to creation of certain provisions.
After-tax Profit
Profit after tax for the Q1 ‘23 amounted to PKR 10.7’Bn as compared to
a profit of PKR 11.25’Bn in Q4 ‘22 reflecting 5% decrease as compared PKR Bn 15.3
13.7
to previous quarter. In Q2 ‘23, profit after tax is increased by 43.5% and 12.1
11.3 10.7
closed at PKR 15.3’Bn as against PKR 10.7’Bn in the previous quarter 9.8
due to increase in super tax rate from 4% to 10% and prior year charge 7.0
pertaining to ADR related tax amounting to PKR 14.2 Bn. Profit after-tax
for the Q3 ‘23 amounted to PKR 12.1’Bn, 21% down as compared to 2.3
the previous quarter. For the Q4 ‘23 profit after-tax amounted to PKR
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
13.7 Bn, i.e., 13% up as compared to the previous quarter.
2022 2023

QUARTERLY DATA - 2023 VS 2022
PKR “Mn”
2023 2022
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Financial Position
Cash and balances with treasury 294,993 301,202 337,542 254,592 229,911 220,822 262,915 241,010
and other banks
Balances with other banks 42,325 12,395 25,476 34,429 18,594 21,053 15,957 18,733
Lending to financial institutions 192,430 567,584 135,025 479,050 31,272 102,251 184,977 125,133
Investments - net 4,403,364 4,150,759 4,099,258 3,741,390 3,477,354 3,356,574 3,250,620 1,997,334
Advances - net 1,398,077 1,295,340 1,298,998 1,231,517 1,230,522 1,213,960 1,170,225 1,188,226
Operating Fixed assets 56,974 56,849 57,153 57,312 57,106 53,442 53,632 54,066
Intangible Assets 1,510 1,561 1,367 1,426 1,389 1,212 889 485
Deferred tax assets - net - 21,926 30,054 34,471 22,299 3,033 3,873 1,154
Right of use assets 6,934 7,103 6,634 6,784 6,708 7,006 6,510 6,543
Other assets 256,100 224,421 220,256 214,655 165,269 188,612 170,238 108,238
Total Assets 6,652,707 6,639,139 6,211,763 6,055,626 5,240,425 5,167,965 5,119,835 3,740,921
Bills payable 68,000 11,227 20,093 7,907 55,268 14,325 30,883 19,035
Borrowings 2,177,743 2,610,387 2,102,404 2,503,004 1,940,486 1,578,495 1,315,601 607,680
Deposits and other accounts 3,674,359 3,344,976 3,451,689 2,976,228 2,666,184 3,010,776 3,198,626 2,634,546
Lease Liability against right-of-use 8,265 8,355 7,967 9,059 8,268 8,610 8,109 7,966
assets
Deferred tax liabilities 720 - - - - - - -
Other liabilities 340,864 319,361 306,009 254,478 269,371 253,857 273,639 173,345
Total Liabilities 6,269,952 6,294,306 5,888,162 5,750,676 4,939,577 4,866,063 4,826,857 3,442,571
Net Assets (Represented

382,756 344,834 323,600 304,949 300,848 301,902 292,978 298,350
as below)
Share capital 21,275 21,275 21,275 21,275 21,275 21,275 21,275 21,275
Reserves 79,071 77,763 76,690 74,169 64,144 62,792 58,466 54,665
Surplus on revaluation of assets 63,655 37,904 29,733 27,611 42,917 53,984 55,747 65,921
Unappropriated Profit 218,754 207,892 195,902 181,894 172,512 163,851 157,490 156,489
382,756 344,834 323,600 304,949 300,848 301,902 292,978 298,350
2023 2022
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Financial Performance
Mark-up / return / interest earned 295,973 296,353 239,941 192,392 171,115 152,805 100,186 79,204
Mark-up / return / interest expensed 247,775 248,948 199,318 159,869 134,877 125,322 72,873 53,412
Net mark-up / Interest income 48,197 47,405 40,623 32,523 36,238 27,484 27,313 25,791
Non interest income 15,899 5,682 11,526 7,500 11,356 6,976 10,259 8,093
Operating Expenses 28,194 21,342 22,934 21,161 23,399 18,929 19,090 16,755
Profit before provisions 35,903 31,744 29,214 18,861 24,196 15,531 18,481 17,130
Reversal/Provisions and write offs-net 5,245 8,813 (272) 684 9,801 1,065 665 1,069
Extra Ordinary Item - - - - - - -
Pre-tax profit 30,659 22,931 29,487 18,177 14,394 14,465 17,817 16,061
Taxation 16,968 10,803 14,153 7,488 3,148 7,442 15,514 6,223
After-tax profit 13,690 12,128 15,333 10,689 11,247 7,023 2,303 9,837

KEY 6 YEARS’ PERFORMANCE RATIOS

6 YEARS’ SUMMARY (UNCONSOLIDATED)
PKR “Mn”
Financial Position 2023 2022 2021 2020 2019 2018

Asset
Cash and balances with treasury banks 294,993 229,911 278,747 249,260 292,513 247,518
Balances with other banks 42,325 18,594 17,667 14,227 13,221 12,202
Lending to financial institutions 192,430 31,272 335,467 126,805 134,780 106,392
Investments - net 4,403,364 3,477,354 1,938,171 1,463,398 1,449,555 1,284,319
Advances - net 1,398,077 1,230,522 1,113,392 983,255 1,008,139 926,007
Operating Fixed assets 58,484 58,495 54,754 54,717 54,679 54,106
Deferred tax assets - net - 22,299 1,626 - - -
Right of use assets 6,934 6,708 6,605 6,670 7,221 -
Other assets 256,100 165,269 100,255 110,196 164,281 168,022
Total assets 6,652,707 5,240,425 3,846,684 3,008,527 3,124,389 2,798,566
LIABILITES
Bills payable 68,000 55,268 21,848 16,795 19,867 9,944
Borrowings 2,177,743 1,940,486 312,925 138,539 471,757 392,739
Deposits and other accounts 3,674,359 2,666,184 3,019,155 2,418,966 2,198,049 2,011,385
Lease liability against right of use assets 8,265 8,268 7,894 7,534 7,640 -
Deferred tax liabilities 720 - - 2,978 10,916 6,985
Other liabilities 340,864 269,371 198,660 156,156 183,545 170,644
Total Liabilities 6,269,952 4,939,577 3,560,482 2,740,968 2,891,775 2,591,698
Net Assets (Represented by as below) 382,756 300,848 286,203 267,559 232,614 206,869
Share capital 21,275 21,275 21,275 21,275 21,275 21,275

Reserves 79,071 64,144 60,371 56,563 52,309 53,274
Surplus on revaluation of assets 63,655 42,917 64,482 73,699 70,244 59,986
Unappropriated Profit 218,754 172,512 140,074 116,021 88,786 72,333
382,756 300,848 286,203 267,559 232,614 206,869
Financial Performance 2023 2022 2021 2020 2019 2018

Mark-up / return / interest earned 1,024,658 503,310 231,883 257,811 239,477 149,969
Markup / Rerurn / Interest expensed 855,910 386,484 134,265 153,656 167,570 89,302
Net Mark-up / Interest Income 168,748 116,827 97,618 104,155 71,907 60,666
Fee & commission income and Exchange Income 29,171 28,602 24,314 22,327 25,170 27,017
Capital gain & Dividend income 9,642 6,345 10,783 9,787 5,262 6,545
Other income 1,793 1,737 1,844 3,963 5,768 2,687
Total non-mark-up / interest income 40,606 36,684 36,942 36,077 36,199 36,249
Total income 209,354 153,510 134,559 140,232 108,107 96,915
Non-Markup / Interest Expenses 93,632 78,173 60,004 63,112 65,853 55,931
Profit before provisions 115,722 75,338 74,556 77,120 42,254 40,984
Provisions and write offs - net 14,469 12,601 11,916 30,896 14,250 11,300
Extra Ordinary Item - - 9,779 - - -
Profit before taxation 101,253 62,737 52,860 46,224 28,003 29,683
Taxation 49,413 32,327 24,852 15,665 12,194 9,668
Profit after taxation 51,840 30,410 28,008 30,559 15,810 20,015

6 YEARS’ HORIZONTAL ANALYSIS (BALANCE SHEET)
2023 YoY 2022 YoY 2021 YoY 2020 YoY 2019 YoY 2018 YoY
ASSETS Mn % Mn % Mn % Mn % Mn % Mn %
Cash and balances with 294,993 28% 229,911 -18% 278,747 12% 249,260 -15% 292,513 18% 247,518 55%
treasury banks
Balances with other banks 42,325 128% 18,594 5% 17,667 24% 14,227 8% 13,221 8% 12,202 -54%
Lending to financial institutions 192,430 515% 31,272 -91% 335,467 165% 126,805 -6% 134,780 27% 106,392 295%
Investments - net 4,403,364 27% 3,477,354 79% 1,938,171 32% 1,463,398 1% 1,449,555 13% 1,284,319 -1%
Advances - net 1,398,077 14% 1,230,522 11% 1,113,392 13% 983,255 -2% 1,008,139 9% 926,007 25%
Operating Fixed assets 58,484 (0.02%) 58,495 7% 54,754 0% 54,717 0% 54,679 1% 54,106 65%
Deferred tax assets - net - (100%) 22,299 1272% 1,626 0% - 0% - 0% - -100%
Right of use assets 6,934 3% 6,708 2% 6,605 -1% 6,670 -8% 7,221 100% - 0%
Other assets 256,100 55% 165,269 65% 100,255 -9% 110,196 -33% 164,281 -2% 168,022 -22%
Total assets 6,652,707 26.9% 5,240,425 36.2% 3,846,684 27.9% 3,008,527 -3.7% 3,124,389 12% 2,798,566 12%
LIABILITES `
Bills payable 68,000 23% 55,268 153% 21,848 30% 16,795 -15% 19,867 100% 9,944 -25%
Borrowings 2,177,743 12% 1,940,486 520% 312,925 126% 138,539 -71% 471,757 20% 392,739 9%
Deposits and other accounts 3,674,359 38% 2,666,184 -12% 3,019,155 25% 2,418,966 10% 2,198,049 9% 2,011,385 16%
Lease liability against right of 8,265 0% 8,268 5% 7,894 5% 7,534 0% 7,640 100% - 0%
use assets
Deferred tax liabilities 720 0% - 0% - -100% 2,978 -73% 10,916 56% 6,985 100%
Other liabilities 340,864 27% 269,371 36% 198,660 27% 156,156 -15% 183,545 8% 170,644 -26%
Total Liabilities 6,269,952 27% 4,939,577 39% 3,560,482 30% 2,740,968 -5% 2,891,775 12% 2,591,698 11%
NET ASSETS 382,756 27% 300,848 5% 286,203 7% 267,559 15% 232,614 12% 206,869 18%
Share capital 21,275 0% 21,275 0% 21,275 0% 21,275 0% 21,275 0% 21,275 0%

Reserves 79,071 23% 64,144 6% 60,371 7% 56,563 8% 52,309 -2% 53,274 6%
Surplus on revaluation of 63,655 48% 42,917 -33% 64,482 -13% 73,699 5% 70,244 17% 59,986 21%
assets
Unappropriated profit 218,754 27% 172,512 23% 140,074 21% 116,021 31% 88,786 23% 72,333 34%
382,756 27% 300,848 5% 286,203 7% 267,559 15% 232,614 12% 206,869 18%
Total Assets Investments - net

27% 27%
6,652.7 4,403.4
PKR Bn PKR Bn
36% 79%
5,240.4 3,477.4
28% 32%
-4% 1%
12% 13%
3,846.7
3,124.4
2,798.6 3,008.5 1,938.2
1,449.6 1,463.4
1,284.3
2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023
Total Assets YoY Growth Investments-net YoY Growth
Over the past 6 years, the Bank’s asset base has increased manifold depicting Investments continue to take a major share of the total asset
18.91% CAGR. The PKR 6.65 trillion of total assets represents approximately
base. 27% YoY growth in 2023 is due to Bank has diversified
15.40% of the total industry. In recent years, the Bank has achieved coherent
investment portfolio and earns a higher yield on investments. This
growth in assets-mix efficiently managing its assets-liability maturity profile. The
highest 26.9% YoY increase in the asset base has been observed in 2023. This translates into 27.94% CAGR over the past six years.
significant increase in 2023 is due to investments that stood at PKR 4,403.36 bn,
which is PKR 926.0 bn or 27% up from PKR 3,477.4 bn at the end of 2022. This
was in line with the Bank’s prudent strategy of liquidity & funding management.

6 YEARS’ VERTICAL ANALYSIS (BALANCE SHEET)
ASSETS Mn % Mn % Mn % Mn % Mn % Mn %
Cash and balances with 294,993 4% 229,911 4% 278,747 7% 249,260 8% 292,513 9.4% 247,518 9%
treasury banks
Balances with other banks 42,325 1% 18,594 0% 17,667 0.46% 14,227 0.47% 13,221 0.4% 12,202 0%
Lending to financial 192,430 3% 31,272 1% 335,467 9% 126,805 4% 134,780 4.3% 106,392 4%

institutions
Investments - net 4,403,364 66% 3,477,354 66% 1,938,171 50.39% 1,463,398 48.64% 1,449,555 46.4% 1,284,319 46%
Advances - net 1,398,077 21% 1,230,522 23% 1,113,392 29% 983,255 33% 1,008,139 32.3% 926,007 33%
Operating Fixed assets 58,484 1% 58,495 1% 54,754 1% 54,717 2% 54,679 1.8% 54,106 2%
Deferred tax assets - net - 0% 22,299 0% 1,626 0% - 0% - 0.0% - 0%
Right of use assets 6,934 0% 6,708 0% 6,605 0.17% 6,670 0% 7,221 0.2% - 0%
Other assets 256,100 4% 165,269 3% 100,255 3% 110,196 4% 164,281 5.3% 168,022 6%
Total assets 6,652,707 100% 5,240,425 100% 3,846,684 100% 3,008,527 100% 3,124,389 100% 2,798,566 100%
LIABILITES
Bills payable 68,000 1% 55,268 1% 21,848 1% 16,795 1% 19,867 1% 9,944 0%
Borrowings 2,177,743 35% 1,940,486 39% 312,925 9% 138,539 5% 471,757 16% 392,739 15%
Deposits and other accounts 3,674,359 59% 2,666,184 54% 3,019,155 85% 2,418,966 88% 2,198,049 76% 2,011,385 78%
Sub-ordinated loans - 0% - 0% - 0% - 0% - 0% - 0%
Liabilities against assets - 0% - 0% - 0% - 0% - 0% - 0%

subject to Finance Lease
Lease liability against right of 8,265 0% 8,268 0% 7,894 0% 7,534 0% 7,640 0% - 0%
use assets
Deferred tax liabilities 720 0% - 0% - 0% 2,978 0% 10,916 0% 6,985 0%
Other liabilities 340,864 5% 269,371 5% 198,660 6% 156,156 6% 183,545 6% 170,644 7%
Total Liabilities 6,269,952 100% 4,939,577 100% 3,560,482 100% 2,740,968 100% 2,891,775 100% 2,591,698 100%
NET ASSETS 382,756 6% 300,848 6% 286,203 7% 267,559 9% 232,614 7% 206,869 7%
Share capital 21,275 6% 21,275 7% 21,275 1% 21,275 1% 21,275 1% 21,275 1%
Reserves 79,071 21% 64,144 21% 60,371 2% 56,563 2% 52,309 2% 53,274 2%
Surplus on revaluation of 63,655 17% 42,917 14% 64,482 2% 73,699 2% 70,244 2% 59,986 2%
assets
Unappropriated profit 218,754 57% 172,512 57% 140,074 4% 116,021 4% 88,786 3% 72,333 3%
Equity 382,756 6% 300,848 6% 286,203 7% 267,559 9% 232,614 7% 206,869 7%
Advances - net Deposits

14% 38%
13% 1,398.1 25% 3,674.4
PKR Bn 11% PKR Bn -12%
9% 1,230.5
-2% 1,113.4 3,019.2
10%
1,008.1 983.3 2,666.2
926.0 9%
2,419.0
2,198.0
2,011.4
2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023
Advances YoY Growth Deposits YoY Growth
Steady growth in advances over the last six years from PKR 926.00 billion in 2018 to Deposits remain the primary source of funding for the Bank. In line with the total
PKR 1,398.07 billion in 2023 with a CAGR of 8.59%. An increase of 13.62% YoY in asset base, deposits of the Bank have also increased significantly over the last six
2023 is observed due to higher demand in borrowing as the economy is recovering years’ growing from PKR 2,011.38 billion in 2018 to PKR 3,674.36 billion in 2023. This
from the impact that covid had in recent years. Historically, the advances of the Bank translates into a massive 82.68% growth with a CAGR of 12.81%. Smooth growth
have posted modest growth during 2018 and have sharply increased in 2023. was observed throughout these years, with the highest YoY increase of 37.81% being
reported in2023. Deposits accounted for 55% of our total assets as of the end of
December 2023. Despite the short-term maturity profile of its deposit base, it has
historically proved to be sticky and a stable funding source.

6 YEARS’ HORIZONTAL ANALYSIS (P&L)
PROFITABILITY Mn % Mn % Mn % Mn % Mn % Mn %
Markup / Return /
1,024,658 104% 503,310 117% 231,883 -10% 257,811 8% 239,477 60% 149,969 22%
Interest earned
Markup / Return / 855,910 121% 386,484 188% 134,265 -13% 153,656 -8% 167,570 88% 89,302 30%
Interest expensed
Net Markup / Interest
168,748 44% 116,827 20% 97,618 -6% 104,155 45% 71,907 19% 60,666 12%
Income
Fee,commission and 29,171 2% 28,602 18% 24,314 9% 22,327 -11% 25,170 -7% 27,017 42%
exchange Income
Capital gains & dividend 9,642 52% 6,345 -41% 10,783 10% 9,787 86% 5,262 -20% 6,545 -36%
Income
Other Income 1,793 3% 1,737 -6% 1,844 -53% 3,963 -31% 5,768 115% 2,687 54%
Non Interest Income 40,606 10.7% 36,684 -0.7% 36,942 2.4% 36,077 -0.3% 36,199 -0.1% 36,249 17%
Total income 209,354 36% 153,510 14% 134,559 -4% 140,232 30% 108,107 12% 96,915 14%
Operating expenses
(Non Mark-Up Interest 93,632 20% 78,173 30% 60,004 -5% 63,112 -4% 65,853 18% 55,931 15%
Expense)
Profit before provisions 115,722 54% 75,338 1% 74,556 -3% 77,120 83% 42,254 3% 40,984 11%
Provisions 14,469 15% 12,601 6% 11,916 -61% 30,896 117% 14,250 26% 11,300 848%
Extra Ordinary Item - - - - 9,779 - - - - - - -
Pre-tax profit 101,253 61% 62,737 19% 52,860 14% 46,224 65% 28,003 -6% 29,683 -17%
Taxation 49,413 53% 32,327 30% 24,852 59% 15,665 28% 12,194 26% 9,668 -23%
After-tax profit 51,840 70% 30,410 9% 28,008 -8% 30,559 93% 15,810 -21% 20,015 -13%
Gross Interest Income In the backdrop of higher average policy rates coupled with a major
104% volumetric growth in interest bearing assets, the Bank generated
PKR Bn 1,024.7
a gross mark-up/interest income of PKR 1,024.6 Bn which is more
than double the PKR 503.3 Bn of prior year. Gross mark-up / interest
earned has posted compounded average increase of 47% over the
177% span of the last six years. While growth was low during the initial two
503.3
8% -10% years, a sharp increase was achieved in the year 2019,2020 and 2022
60% on the back of increasing discount rate and volumetric growth in
239.5 257.8
231.9
earning assets. Corresponding to the shift in asset mix on the back of
150
higher liquidity placed into investments, contribution from income on
investments has increased constantly over the years.
2018 2019 2020 2021 2022 2023
Int. Earned YoY Growth
Interest Expensed
The increase in mark-up expense reflects the impact of volumetric
121%
growth in deposits and borrowings coupled with the impact of revision
PKR Bn 855.9
in profit rates in line with the policy rate increase from time to time.
Responding to the increasing discount rate, the Bank has been
particularly active in mobilizing low-cost CASA deposits. Satisfactory
188% results have been delivered in this regard by both conventional as
-8% -13% 386.5 well as Islamic banking operations. During the year 2023, the average
88%
policy rate remained at 20.69% compared to 13.20% of last year. This
167.6 153.7 translates into an average increase in the policy rate by 751bps. As a
89.3 134.3
consequent of that, the Bank recorded an increase in cost of funds of
445bps to 12.4% for 2023 (2022: 8.0%).
2018 2019 2020 2021 2022 2023
Int. Exp YoY Growth

6 YEARS’ VERTICAL ANALYSIS (P&L)
Financial Performance Mn % Mn % Mn % Mn % Mn % Mn %
Markup / Return / Non Interest

Income Earned
Markup / Return / 1,024,658 96% 503,310 93% 231,883 86% 257,811 88% 239,477 87% 149,969 81%
Interest earned
Fee & commission income and 29,171 3% 28,602 5% 24,314 9% 22,327 8% 25,170 9% 27,017 15%
Exchange Income
Capital gains & dividend income 9,642 1% 6,345 1% 10,783 4% 9,787 3% 5,262 2% 6,545 4%
Other income 1,793 0% 1,737 0% 1,844 1% 3,963 1% 5,768 2% 2,687 1%
Total Income 1,065,264 100% 539,994 100% 268,824 100% 293,888 100% 275,677 100% 186,218 100%
Markup / Return / Non Interest

Expense
Markup / Return / Interest expensed 855,910 80% 386,484 72% 134,265 50% 153,656 52% 167,570 61% 89,302 48%
Operating expenses and other 93,632 9% 78,173 14% 60,004 22% 63,112 21% 65,853 24% 55,931 30%
charges
Provisions 14,469 1% 12,601 2% 11,916 4% 30,896 11% 14,250 5% 11,300 6%
Extra ordinary item - 0% - 0% 9,779 4% -
Taxation 49,413 5% 32,327 6% 24,852 9% 15,665 5% 12,194 4% 9,668 5%
Total Expense - As a % of Total

1,013,424 95% 509,584 94% 240,816 90% 263,329 90% 259,867 94% 166,203 89%
Income
After-tax profit 51,840 5% 30,410 6% 28,008 10% 30,559 10% 15,810 6% 20,015 11%
Total 1,065,264 100% 539,994 100% 268,824 100% 293,888 100% 275,677 100% 186,218 100%
Non Interest Income

11%
PKR Bn 2%
0% 0% 0% 40.6
36.2 36.2 36.1 36.9 36.7
The Bank’s Non-mark-up / interest income “NFI” has remained satisfactory
for most of the years. During these years, NFI has maintained a trend of
contributing approximately one-third of the Bank’s total income, on the back
of bullish performance of the stock market, and higher dividend payout by
companies during 2023, NFI for 2023 11% higher than 2022.
2018 2019 2020 2021 2022 2023

Non-Int. Income YoY Growth
OPEX
20%
30% 93.6
PKR Bn
18%
-4% -5% Total operating expenses in 2023 amounted to PKR 93.6 Bn against PKR
78.2
65.9 63.1 78.2 Bn for the year 2022. The operating expenses increased by 19.7%. Over
60.0
55.9 the period increase was observed from 2017 to 2019 followed by a drop in
2020 and also in 2021. This drop was due to reversal of certain HR related
unutilized provisions that were no more required. In 2023 a 19.7% YoY growth
depicts the impact of both i.e. the reversals in prior year as well as inflationary
pressure in the rising utility and fuel prices.
2018 2019 2020 2021 2022 2023
OPEX YoY Increase
Capital
27%
5%
382.8
PKR Bn 7%
15%
300.8
12% 267.6 286.2
232.6 Reflecting our prudent capital management strategy, net assets of the Bank
206.9
have also posted healthy increase on the back of higher profitability and profit
retention in the recent years. Net assets, that amounted to PKR 206.9 Bn in
2018, have increased to PKR 382.8 Bn at the end of December 2023. This
translates into a 13% CAGR over the past six years.
2018 2019 2020 2021 2022 2023

Capital YoY Growth

6 YEARS’ SUMMARY (CONSOLIDATED FINANCIALS)
PKR “Mn”
2023 2022 2021 2020 2019 2018

Cash and balances with treasury banks 295,455 230,226 278,869 249,970 293,198 247,917
Balances with other banks 43,005 19,623 19,211 15,015 13,598 13,050
Lending to financial institutions 192,430 31,272 335,467 126,805 134,780 106,392
Investments - net 4,414,174 3,482,936 1,942,741 1,466,405 1,452,799 1,284,975
Advances - net 1,398,073 1,230,669 1,113,314 983,871 1,008,399 926,340
Operating Fixed assets 59,663 59,706 56,005 56,109 55,990 55,196
Deferred tax assets - net - 22,406 1,903 - - -
Right of use assets 7,336 7,186 7,091 7,017 7,447 -
Other assets 258,738 167,741 102,434 112,018 166,148 170,018
Total Assets 6,668,874 5,251,766 3,857,035 3,017,210 3,132,360 2,803,886
Bills payable 68,000 55,268 21,848 16,795 19,867 9,944
Borrowings 2,177,743 1,940,486 312,925 138,539 471,757 392,739
Deposits and other accounts 3,673,110 2,665,273 3,018,148 2,418,928 2,197,985 2,011,313
Liabilities against assets subject to Finance Lease 208 121 134 197 194 121
Lease liability against right of use assets 8,683 8,761 8,361 7,869 7,831 -
Deferred tax liabilities 843 - - 2,933 10,869 6,946
Other liabilities 342,873 271,556 200,596 157,545 184,633 171,762
Total Liabilities 6,271,460 4,941,466 3,562,012 2,742,808 2,893,138 2,592,825
Net Assets (Represented by as below)
Share capital 21,275 21,275 21,275 21,275 21,275 21,275
Reserves 85,079 67,489 62,427 57,591 53,261 53,443
Surplus on revaluation of assets 64,232 42,274 64,995 73,988 70,359 59,262
Unappropriated Profit 225,694 178,190 145,313 120,632 93,466 76,240
Sub Total 396,280 309,227 294,010 273,486 238,360 210,220
Non-controlling interest 1,134 1,073 1,013 916 863 842
Total 397,414 310,300 295,023 274,402 239,223 211,061
PKR “Mn”
2023 2022 2021 2020 2019 2018

Mark-up / return / interest earned 1,025,135 503,576 232,052 258,031 239,710 150,178
Mark-up / return / interest expensed 855,780 386,474 134,285 153,652 167,556 89,287
Net mark-up / Interest income 169,354 117,102 97,767 104,379 72,154 60,891
Fee & commission income and Exchange income 31,878 30,840 26,054 23,823 26,737 28,924
Capital gain & Dividend income 9,626 6,193 10,718 9,748 5,265 6,445
Share of profit / (loss) from joint venture - net of tax 1,226 545 218 (219) (96) (334)
Share of profit / (loss) from associates - net of tax 245 (95) 23 43 37 (35)
Other income 1,797 1,790 1,856 3,965 5,817 2,675
Total non-markup / interest income 44,772 39,273 38,869 37,360 37,760 37,674
Total income 214,126 156,375 136,636 141,739 109,914 98,566
Operating Expenses 95,445 79,661 61,406 64,443 67,379 57,480
Profit before provisions 118,681 76,714 75,230 77,297 42,535 41,085
Provisions 15,382 13,116 11,659 30,912 13,557 11,205
Extraordinary item - - (9,779) - - -
Pre-tax profit 103,299 63,597 53,792 46,385 28,978 29,880
Taxation 49,978 32,648 25,032 15,798 12,331 9,844
After-tax profit 53,321 30,949 28,760 30,586 16,647 20,035

6 Years’ - Maturities of Assets & Liabilities
Maturity of Assets
At the year end 2023, the Bank’s total assets stood at PKR 6,652.7 Bn, increasing at a CAGR of 18.91% over the past six-years based on
expected maturities. While 15.7% of the Bank’s assets are expected to mature within a period of one month, another 2.4% are expected
to mature over the next two months i.e. a total of 2.2% to mature within a period of 3 months. The remaining 79.7% of the assets have a
maturity period of beyond 3 months.
Maturities of Assets
PKR Bn
1,755
1,524 1,551 1,506
1,980
1,432 1,963
1,072 1,115
926
746 1,278 807
619 571 624
459 460 497
408 422 424 443
363 386
281 282 288
223 267
2018 2019 2020 2021 2022 2023

Upto 3M 3M to 1Y 1Y to 3Y 3Yto 5Y 5Y & Above
Maturity of Liabilities
At the year end 2023, the Bank’s total liabilities stood at PKR 6,270.0 Bn, increasing at a CAGR of 19.3% over the past six-years based on
expected maturities. While 86.3% of the Bank’s liabilities are expected to mature within a period of one month, another 1.8% are expected
to mature over the next two months i.e. a total of 1.7% to mature within a period of 3 months. The remaining 10.2% of the liabilities have
a maturity period of beyond 3 months. Thus, efficiently managing the liquidity risk, the Bank maintains a positive maturity gap between
the average maturity of its assets and liabilities.
Maturities of Liabilities
PKR Bn
3,354
2,619
1،326 1,370
1,181 1,221
1,049 985
937
800 913 955
599 531 262 668 644 734
573 501
433 490
304 340 61
19 21 21 37 48
2018 2019 2020 2021 2022 2023

Upto 3M 3M to 1Y 1Y to 3Y 3Y to 5Y 5Y to 10Y

SECTORAL CONCENTRATION
Sector Gross advances Contingencies and Commitments

2023 (%Share) (%YoY) 2023 (%Share) (%YoY)
Power, Oil & Gas, Water, Sanitary 503,862 30.9% 35.0% 110,257 4.0% -13.6%
Individuals 210,381 12.9% 3.5% 228 0.0% -27.9%
Textile 172,773 10.6% 4.6% 15,710 0.6% 0.0%
Public Sector Commodity Operations 127,237 7.8% 32.1% 3,437 0.1% 1622.7%
Agriculture, Forestry, Hunting & Fishing 98,624 6.0% 21.1% 218 0.0% -56.8%
Metal Products 75,902 4.7% 7.1% 23,670 0.9% 8.3%
Transport, Storage and Communication 73,231 4.5% 27.0% 55,560 2.0% -52.8%
Wholesale and Retail Trade 53,130 3.3% -0.4% 3,106 0.1% 106.1%
Services 48,455 3.0% 15.4% 1,512,041 55.3% -1.3%
Others 268,091 16.4% -9.2% 1,011,573 37.0% 5.5%
1,631,686 100% 13.4% 2,735,801 100% -1.5%
Gross Advances
Gross advances of the Bank grew steadily over the last six years at a CAGR of 9.0%, closing at PKR 1,631.7 Bn at year end 2023.Whereas
11.9%, 13.1% and 10.7% of the Bank’s gross advances pertain to Power, Individuals and Textile that primarily drive Pakistan’s economy,
Over the past six years, and more particularly in the recent years, significant growth in advances to Textile, Financial and Oil and Gas
sectors is witnessed given an increasing demand following the Government’s relief package for various sector.
Gross Advances
268.1
PKR Bn
48.5
295.4 53.1
73.2
290.1
42.0 75.9
53.4
260.9 242.6 57.7
38.1 98.6
225.2 42.4 70.9
32.8 55.1 127.2
14.1
12.9 36.2 36.6 71.0 81.4
43.4 56.6 55.2 172.8
67.3 71.2 96.3
60.0 67.5
64.9 59.0 63.1 77.3
165.1
49.7 66.6 62.4
210.4
67.2 160.0
130.6 132.7
110.5 203.2
198.1
170.3 184.0
148.8
503.9
373.2
276.9 289.5 283.2 301.7
2018 2019 2020 2021 2022 2023
Power, Oil and Gas, Water, Sanitary Public Sector Commodity Operations Transport, Storage and Communication
Individuals Agriculture, Forestry, Hunting & Fishing Wholesale and Retail Trade
Textile Metal Products Services
Others

SECTORAL CONCENTRATION
Sector Non-Performing Loans Sepcific Provision Held

2023 (%Share) (%YoY) 2023 (%Share) (%YoY)
Power, Oil & Gas, Water, Sanitary 34,501 15.6% -0.8% 32,033 15.7% -0.9%
Individuals 6,901 3.1% 6.7% 4,319 2.1% -0.7%
Textile 38,746 17.5% 2.4% 38,591 19.0% 6.0%
Public Sector Commodity Operations 719 0.3% 868.9% 235 0.1% 217.2%
Agriculture, Forestry, Hunting & Fishing 7,982 3.6% 8.4% 5,859 2.9% 2.5%
Metal Products 30,959 14.0% 16.9% 30,872 15.2% 16.6%
Transport, Storage and Communication 17,135 7.8% 15.6% 15,080 7.4% 20.2%
Wholesale and Retail Trade 11,827 5.4% 10.4% 11,631 5.7% 9.6%
Services 2,260 1.0% -27.2% 1,571 0.8% -13.3%
Others 69,796 31.6% 9.6% 63,380 31.1% 4.9%
220,826 100% 7.6% 203,571 100% 6.7%
Non-performing Loans
At year end of 2023, Bank’s non-performing loans stood at PKR 220.8 Bn, demonstrating a 7.6% YoY deterioration. However, despite
same increase in total NPL, the infection ratio has reduced from 14.27% in 2022 to 13.53% in 2023. NPL’s that grew at a CAGR of 10.6%
over the period under review, are more concentrated in the Oil, Gas, Sugar, Textile and Metal Products sectors. However, recently the NPL
ratio has shown slight improvement as it changed from 12.6% in 2018 to 13.5% at the end 2023. Furthermore, the coverage ratio has
improved from 92.9% (2022) to 92.2% at the year end of 2023.
Non-performing Loans
PKR Bn
71
64
61
2
54 12
3
4 11
11 17
50
15
4 13
49 13
26 31
2 26
2 11 11
2 10 7 8
4 7 1
9 25
23 39
19 6 37 38
4 6
37 6 6 7
39 35
6 33 35 35
2 6 13
4 5
2018 2019 2020 2021 2022 2023
Power, Oil and Gas, Water, Sanitary Public Sector Commodity Operations Transport, Storage and Communication
Individuals Agriculture, Forestry, Hunting & Fishing Whole Sale and Retail Trade
Textile Metal Products Services
Others

MATURITIES OF ASSETS AND LIABILITIES
2023
Over 3
Upto 3 Over 1 to Over 2 to Over 3 to Over 5
Financial Position Total months
Months 2 years 3 years 5 Years Years
to 1 year
--------------------------------------- (Rupees in Mn) ---------------------------------------
Assets
Cash and balances with treasury banks 294,993 191,157 103,836 - - - -
Balances with other banks 42,325 40,895 1,430 - - - -
Lending to financial institutions 192,430 192,430 - - - - -
Investments 4,403,364 46,060 1,631,054 1,304,643 489,322 649,752 282,532
Advances 1,398,077 611,405 208,423 74,813 65,862 153,261 284,313
Fixed assets 56,974 - 709 2,333 709 1,242 51,981
Intangible assets 1,510 - 503 503 503 - -
Right of Use Assets 6,934 3 169 459 1,022 1,371 3,911
Deferred tax assets - - - - - - -
Other assets 256,100 196,437 33,884 22,370 757 1,136 1,515
6,652,707 1,278,387 1,980,009 1,405,120 558,176 806,763 624,252
Liabilities
Bills payable 68,000 43,971 16,020 8,010 - - -
Borrowings 2,177,743 2,127,655 8,351 1,073 1,066 6,559 33,039
Deposits and other accounts 3,674,359 968,573 1,296,929 473,941 461,875 470,263 2,778
Liabilities against assets subject to right of use assets 8,265 6 192 596 1,095 1,760 4,616
Deferred tax liabilities 720 - - - - 720 -
Other liabilities 340,864 213,608 48,167 26,231 10,936 21,216 20,707
6,269,952 3,353,812 1,369,658 509,851 474,973 500,516 61,140
Net Assets 382,756 (2,075,425) 610,351 895,269 83,203 306,246 563,112
KEY INTEREST BEARING ASSETS AND LIABILITIES

2023 2022
Effective Effective
Financial Performance Avg. Volume Interest Rate Interest Avg. Volume Interest Rate Interest
% %
Interest Earning Assets
Placements 145615.4 20% 28885.2 109.7 12.4% 13.6
Advances (net) 1306.8 17.0% 221.8 1169.4 7.6% 141.4
Investments 3904.4 19.8% 774.0 2631.7 13.2% 348.3
Interest Bearing Liabilities
Deposits 2956.8 12.3% 365.1 2655.3 7.9% 209.6
Borrowings 2302.8 20.7% 475.7 1208.4 13.7% 166.0

MARKUP & NON MARKUP INCOME
PKR “Mn”
MARK-UP EARNED 2023 2022 2021 2020 2019 2018
Loans and advances 221,787 141,365 87,347 99,781 109,646 69,359

Investments 773,985 348,305 139,115 154,041 122,337 76,288
Lending to FIs 27,619 12,815 3,957 2,374 5,367 3,593
Balances with other banks 1,266 825 1,464 1,616 2,128 729
Total 1,024,658 503,310 231,883 257,811 239,477 149,969
MARK-UP EXPENSED
Deposits 365,117 209,598 87,838 103,380 110,075 61,704
Borrowings 6,989 5,117 6,839 6,930 6,982 2,942
Cost of foreign currency swaps against foreign currency 14,294 10,026 8,018 9,175 9,157 6,075
deposits / borrowings
Finance charge on lease liability against right of use 811 849 775 754 719 -
assets
Securities sold under repurchase agreements 468,699 160,895 30,795 33,417 40,637 18,581
Total 855,910 386,484 134,265 153,656 167,570 89,302
NON MARK-UP / INTEREST INCOME

Fee and commission income 22,032 21,152 17,804 18,254 19,125 17,526
Dividend income 5,258 5,207 4,595 1,901 3,150 2,613
Foreign exchange income 7,139 7,450 6,511 4,073 6,045 9,490
Gain on securities - net 4,384 1,138 6,188 7,886 2,112 3,932
Other income 1,793 1,737 1,844 3,963 5,768 2,687
Total 40,606 36,684 36,942 36,077 36,199 36,249
Contribution to Total Income Contribution to GII

% %
3% 3% 2% 2% 3% 3%
37% 33% 26% 27% 24% 19%
51% 51% 60% 60% 69% 76%
63% 67% 74% 73% 76% 81%
46% 46% 39% 38%

28% 22%
2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023
NII NFI Loans and advances Investments Others

DUPONT ANALYSIS
Indicator Formula Unit 2023 2022 2021 2020 2019 2018

Net Operating Margin PAT / Total Income A % 24.76 19.81 20.8 21.8 14.6 20.7
Asset Utilisation Total Income / Avg Assets B % 3.52 3.38 3.93 4.6 3.7 3.7
Return on Assets PAT / Avg Assets C=AxB % 0.87 0.67 0.82 1.0 0.5 0.8
Leverage Ratio / Equity Multiplier Avg Assets / Avg Equity D Times 20.61 18.95 16.50 17.2 19.2 19.5
Return on Equity (Excl. Surplus on Rev.) PAT/Avg Equity E=CxD % 17.97 12.68 13.48 17.2 10.2 14.7
Dupont Analysis
%
24.8%
20.7% 21.8% 20.8% 19.8%
14.6%
17.2% 18.0%
14.7% 12.7%
10.2% 13.5%
3.7% 3.7% 4.6% 3.9% 3.4% 3.5%
2018 2019 2020 2021 2022 2023

Net Operating Margin Asset Utilisation Return on Equity (Excl. Surplus on Rev.)
• Net operating margins of the Bank increased from 19.8% to 24.8%. Increase in the net operating margin is mainly pertains to
the SBP policy rate which increase the total income.
• Asset Utilisation in term of Total Income increased to 3.5% in 2023 from 3.4% in 2022. This was mainly due to increase in
policy rate by SBP which decreased the cost of deposits.
• Return on Equity during 2020 - 2023 remained in the range of 17.2% - 18.0%. The ROE for year 2023 remained at 18.0%.

SUMMARY OF CASH FLOWS
PKR “Mn”
Classification 2023 2022 2021 2020 2019 2018

Cash Flow from Operating Activities 992,103 1,561,683 470,702 (51,870) 293,000 597,385
Cash Flow from Investing Activities (912,791) (1,607,937) (459,106) 52,401 (254,952) (536,224)
Cash Flow from Financing Activities (3,454) (2,428) (2,454) (2,042) (2,046) (40)
Cash & Cash equivalent at Begining of the Year 222,704 271,386 262,243 263,754 227,753 166,631
Cash & Cash equivalent at the End of the Year 298,562 222,704 271,386 262,243 263,754 227,753
Summary of Cash Flows
PKR Bn
1,561.7
992.1
597.4
470.7
293.0
52.4
(51.9) (0.04)(2.05)(2.04)(2.45)(2.43)(3.45)
(254.9)
(536.2) (459.01)
(912.8)
(1,607.9)
Net cash flow from Operating Activities Net cash flow from Investing Activities Net cash flow from Financing Activities
2018 2019 2020 2021 2022 2023
Cash Flow from Operating Activities mainly represent the core activity of the Bank i.e. mobilization of deposits. Since 2018, deposits of
the Bank have shown a CAGR of 12.8%. During year 2023, there was net inflow of PKR 992.1 billion from Operating Activities. The major
outflow under investing activities was on account of net investments in available-for-sale securities and investment made in held-to-
maturity securities. During the year 2023, outflows of PKR 3.45 billion under financing activities were observed against payment of lease
obligation.

GRAPHICAL SEGMENT
Pakistan Asia Pacific & South Asia
PKR Bn PKR Mn
207.73 2,137 2,438
654 646
147.05
129.48
109.03
54.03 (2,128)
64.10
(4,506)
2021 2022 2023 2021 2022 2023

Total Income Profit / (Loss) before Tax Total Income Profit / (Loss) before Tax
Europe USA
USA
PKR Mn PKR Mn
483
305 326
1,256
831
538
(631)
(2,349)
(758) (2,592)
(927) (3,139)
2021 2022 2023 2021 2022 2023
Total Income Profit / (Loss) before Tax Total Income Profit / (Loss) before Tax
Middle East
PKR Mn
2,014
2,868
2,103
799
1,158 1,337
2021 2022 2023

Total Income Profit / (Loss) before Tax

Assets Quality and Provisions
NPLs / Coverage
There is an increase in domestic NPLs by PKR 4.4 Bn (2.9% YoY).
PKR Bn However, NPLs in FCY denominated loans recorded an increase
220.8 of PKR 11.1 Bn mainly due to exchange impact. We prudently
measure impairments in the assets portfolio and maintain robust
197.9 levels of provisions. Provisions charge for 2023 amounted to PKR
205.3 14.7 Bn of which PKR 13.4 Bn was against impairment in loans, and
92.2%
PKR 0.5 Bn against diminution in value of investments.
90.6%
Specific provisions held against NPLs stood at PKR 203.6 Bn

92.9%
(Dec’22: PKR 190.7 Bn) whereas general provisions stood at PKR

30 Bn (Dec’22: PKR 17.3 Bn) and NPL coverage against total NPL
is 90.5%. Since IFRS 9 stands implemented effective January
01, 2024, therefore prudently some general provisions under the
2021 2022 2023 expected credit loss methodology have been kept over and above
NPLs Coverage as required under prudential regulations.
NON-PERFORMING LOANS
PKR “Mn”
2023 2022
Category-wise
NPL Spec. Prov. NPL Spec. Prov.
OAEM 2,156 60 1,781 73
Substandard 6,421 1,560 5,888 1,440
Doubtful 11,844 6,180 9,165 4,811
Loss 200,404 195,770 188,473 184,387
Total 220,825 203,570 205,307 190,711
Non-performing loans
Asset Quality
91% 93% 92%
90% 90%
PKR Bn 95% 205 221
204
198 191
171 179
154
149
133 134
126
14% 15% 15% 14% 14%

13%
2018 2019 2020 2021 2022 2023

NPL Specific Provision Coverage Ratio Infection Ratio

PATTERN OF SHAREHOLDING
As of 31st December
Categories of Shareholders Shareholders Shares Held Percentage
Government Holding
M/S. FEDERAL GOVERNMENT OF PAKISTAN 1 6,238,919 0.29
M/S. PAKISTAN ATOMIC ENERGY COMMISSION 1 679,424 0.03
FINANCE DIVISION, MINISTRY OF FINANCE, GOVT. OF PAKISTAN 1 1,656,788 0.08
State Bank of Pakistan

M/S. STATE BANK OF PAKISTAN 1 1,599,845,728 75.20
Directors, Chief Executive Officer, their spouse(s) and minor children

REHMAT ALI HASNIE 1 949 0.00
FARID MALIK 1 1,000 0.00
Associated Companies, undertakings and related parties 1 70,000 0.00
NIT and ICP 1 463,078 0.02
Banks Development Financial Institutions, Non-Banking Financial Institutions 8 17,696,447 0.83
Insurance Companies 5 17,627,322 0.83
Modarabas and Mutual Funds 15 14,919,442 0.70
Public Sector Companies and Corporation 5 113,385,860 5.33
General Public
a. Local 9,858 136,806,540 6.43
b. Foreign 89 1,096,324 0.05
Foreign Companies 15 148,170,409 6.96
Others 153 68,854,796 3.24
Totals 10,156 2,127,513,026 100.00
Share holders holding 10% or more Shares Held Percentage
M/S. STATE BANK OF PAKISTAN* 1,599,845,728 75.20
* The Pakistan Sovereign Wealth Fund Act, 2023 became effective during the current period. Under
the said Act, the SBPs shareholding in the Bank stands transferred to the Pakistan Sovereign Wealth
Fund (PSWF).

Karachi - 74000 Road, Karachi - 74200
INDEPENDENT AUDITORS’ REPORT
To the members of National Bank of Pakistan

Report on the Audit of the Unconsolidated Financial Statements
Opinion
We have audited the annexed unconsolidated financial statements of National Bank of Pakistan (the Bank), which
comprise the unconsolidated statement of financial position as at December 31, 2023, and the unconsolidated profit and
loss account, the unconsolidated statement of comprehensive income, the unconsolidated statement of changes in equity
and the unconsolidated cash flow statement for the year then ended, along with unaudited certified returns received from
the branches except for 100 branches which have been audited by us and notes to the unconsolidated financial
statements, including material accounting policy information and other explanatory information and we state that we have
obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the
purposes of the audit.
In our opinion and to the best of our information and according to the explanations given to us, the unconsolidated
statement of financial position, unconsolidated profit and loss account, the unconsolidated statement of comprehensive
income, unconsolidated statement of changes in equity and unconsolidated cash flow statement together with the notes
forming part thereof conform with the accounting and reporting standards as applicable in Pakistan, and, give the
information required by the Banking Companies Ordinance, 1962 and the Companies Act, 2017 (XIX of 2017), in the
manner so required and respectively give a true and fair view of the state of the Bank’s affairs as at December 31, 2023
and of the profit and other comprehensive income, the changes in equity and its cash flows for the year then ended.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Unconsolidated Financial Statements section of our report. We are independent of the Bank in accordance with the
International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants as adopted by the
Institute of Chartered Accountants of Pakistan (the Code) and we have fulfilled our other ethical responsibilities in
accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Emphasis of Matter
We draw attention to note 25.3.4.1 to the unconsolidated financial statements which explains the contingency in relation to
the pension obligation of the Bank. The Bank, based on the opinion of its legal counsel, is confident about a favorable
outcome on this matter and hence, no provision has been made in these unconsolidated financial statements. Our opinion
is not modified in respect of this matter.
Key Audit Matter
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
unconsolidated financial statements of the current period. These matters were addressed in the context of our audit of the
unconsolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Member firm of PwC network Member firm of BDO International Limited

Following are the Key Audit Matters:
S.No. Key Audit Matter How the matter was addressed in our audit
1 Provision against advances

(Refer notes 5.6 and 11.4 to the
unconsolidated financial statements)
The Bank makes provision against Our audit procedures to verify provision against domestic
advances extended in Pakistan on a time- advances included, amongst others, the following:
based criteria that involves ensuring that all Ÿ Obtained an understanding of the management process
non-performing advances are classified in to record provision and ensure that it is consistent with
accordance with the ageing criteria specified the requirements of PRs;
in the Prudential Regulations (PRs) issued
by the State Bank of Pakistan (SBP).
Ÿ Evaluated the design and tested the operating
effectiveness of the relevant controls established by the
Bank to identify loss events and for determining the
In addition to the above time-based criteria,
extent of provisioning required against non-performing
the PRs require a subjective evaluation of
advances.
the credit worthiness of borrowers to
determine the classification of advances. The testing of controls included testing of:
Ÿ controls over correct classification of non-performing
The PRs also require the creation of general advances on time-based criteria;
provision for certain categories of advances.
Ÿ controls over accurate computation and recording of
Provision against advances of overseas provision; and
locations is made as per the requirements of Ÿ controls over the governance and approval process
the respective regulatory regimes. related to provision, including continuous reassessment
by the management.
The Bank has recognized a net provision
We selected a sample of loan accounts and performed the
against advances amounting to Rs. 13,387
following substantive procedures to evaluate the
million in the unconsolidated profit and loss
appropriateness of specific and general provision:
account in the current year. As at December
31, 2023, the Bank holds a provision of Rs Ÿ Checked credit documentation, repayments of loan /
233,609 million against advances. This mark-up instalments, tested classification of non-
includes a general provision against the performing advances based on the number of days
overdue;
underperforming portfolio on a prudent
basis. Ÿ Evaluated the management’s assessment for
classification of a customer’s loan facilities as
The determination of provision against performing or non-performing based on review of
advances based on the above criteria repayment pattern, inspection of credit documentation
remains a significant area of judgement and and discussions with the management;
estimation. Because of the significance of Ÿ In case of restructured loans, we reviewed the detailed
the impact of these judgements / documentation of restructuring including approvals,
estimations and the materiality of advances legal opinions, terms of restructuring, payment records
relative to the overall unconsolidated and any other relevant documents to ensure that
financial statements of the Bank, we restructuring was made in accordance with the PRs;
considered the area of provision against Ÿ We also reviewed minutes of the meeting of credit, risk
advances as a key audit matter. and compliance and audit committees to identify risky
exposures; and

Ÿ We had discussions with management to challenge

assumptions and judgements used in performing
portfolio review and recording provisions.
We issued instructions to auditors of those overseas
branches which were selected for audit, highlighting
‘Provision against advances’ as a significant risk. The
auditors of those branches performed audit procedures to
check compliance with regulatory requirements and
reported the results thereof to us. We, as auditors of the
Bank, evaluated the work performed by the component
auditors and the results thereof.
Information Other than the Unconsolidated and Consolidated Financial Statements and Auditors’ Reports
Thereon
Management is responsible for the other information. The other information comprises the information included in the
Annual Report, but does not include the unconsolidated and consolidated financial statements and our auditor’s reports
thereon.
Our opinion on the unconsolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the unconsolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the unconsolidated financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work
we have performed, we conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
Responsibilities of Management and the Board of Directors for the Unconsolidated Financial Statements
Management is responsible for the preparation and fair presentation of the unconsolidated financial statements in
accordance with accounting and reporting standards as applicable in Pakistan, the requirements of Banking Companies
Ordinance, 1962 and the Companies Act, 2017 (XIX of 2017) and for such internal control as management determines is
necessary to enable the preparation of unconsolidated financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the unconsolidated financial statements, management is responsible for assessing the Bank’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic
alternative but to do so.
The Board of directors is responsible for overseeing the Bank’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Unconsolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the unconsolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with

ISAs as applicable in Pakistan will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these unconsolidated financial statements.
As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Ÿ Identify and assess the risks of material misstatement of the unconsolidated financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Ÿ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank’s
internal control.
Ÿ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
Ÿ Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the unconsolidated financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Bank to cease to
continue as a going concern.
Ÿ Evaluate the overall presentation, structure and content of the unconsolidated financial statements, including the
disclosures, and whether the unconsolidated financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide to the Board of Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Board of Directors, we determine those matters that were of most significance in
the audit of the unconsolidated financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1. Based on our audit, we further report that in our opinion:
a) proper books of account have been kept by the Bank as required by the Companies Act, 2017 (XIX of
2017) and the returns referred above from the branches have been found adequate for the purpose of our
audit;

b) the unconsolidated statement of financial position, the unconsolidated profit and loss account, the
unconsolidated statement of comprehensive income, the unconsolidated statement of changes in equity
and the unconsolidated cash flow statement together with the notes thereon have been drawn up in
conformity with the Banking Companies Ordinance, 1962 and the Companies Act, 2017 (XIX of 2017) and
are in agreement with the books of account and returns;
c) investments made, expenditure incurred and guarantees extended during the year were in accordance with
the objects and powers of the Bank and the transactions of the Bank which have come to our notice have
been within the powers of the Bank; and
d) zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the
Bank and deposited in the Central Zakat Fund established under section 7 of that Ordinance.
2. We confirm that for the purpose of our audit we have covered more than sixty per cent of the total loans and
advances of the Bank.
Other Matter
The unconsolidated financial statements of the Bank as at and for the year ended December 31, 2022 were audited by
Yousuf Adil, Chartered Accountants and A. F. Ferguson & Co. Chartered Accountants who had expressed an unmodified
opinion on those statements vide their report dated March 6, 2023.
The engagement partners on the audit resulting in this independent auditor’s report are Zulfikar Ali Causer and Shahbaz
Akbar on behalf of BDO Ebrahim & Co. Chartered Accountants and A. F. Ferguson & Co. Chartered Accountants
respectively.
A. F. Ferguson & Co. BDO Ebrahim & Co.

Karachi Karachi
UDIN: AR202310068Sh8ilRkBX UDIN: AR202310067IA6UFpqha

UNCONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at December 31, 2023
2022 2023 2023 2022

--------------------------(US Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees
Dollars in '000)-----------------------------------------------------------------------------------------------------------------------------------------------
in '000)-------------------------------
ASSETS
815,690 1,046,590 Cash and balances with treasury banks 7 294,992,570 229,910,949
65,968 150,163 Balances with other banks 8 42,325,051 18,593,800
110,950 682,715 Lendings to financial institutions 9 192,430,437 31,272,467
12,337,136 15,622,483 Investments 10 4,403,364,043 3,477,353,874
4,365,709 4,960,169 Advances 11 1,398,076,820 1,230,521,804
202,603 202,137 Fixed assets 12 56,974,417 57,105,842
4,928 5,357 Intangible assets 13 1,510,061 1,388,947
23,800 24,602 Right of use assets 14 6,934,471 6,708,404
79,115 - Deferred tax assets 15 - 22,299,403
586,352 908,603 Other assets 16 256,099,568 165,269,056
18,592,251 23,602,819 6,652,707,438 5,240,424,546
LIABILITIES
196,083 241,256 Bills payable 17 68,000,448 55,268,019

6,884,556 7,726,310 Borrowings 18 2,177,743,194 1,940,485,787
9,459,227 13,036,083 Deposits and other accounts 19 3,674,359,379 2,666,184,360
- - Liabilities against assets subject to finance lease - -
- - Subordinated debt - -
29,333 29,322 Lease liabilities against right of use assets 20 8,264,782 8,267,949
- 2,555 Deferred tax liabilities 15 720,183 -
955,687 1,209,333 Other liabilities 21 340,863,859 269,370,672
17,524,886 22,244,859 6,269,951,845 4,939,576,787
1,067,365 1,357,960 NET ASSETS 382,755,593 300,847,759
REPRESENTED BY
75,481 75,481 Share capital 22 21,275,131 21,275,131

227,574 280,534 Reserves 23 79,071,471 64,144,050
152,263 225,837 Surplus on revaluation of assets 24 63,654,593 42,916,902
612,047 776,108 Unappropriated profit 218,754,398 172,511,676
1,067,365 1,357,960 382,755,593 300,847,759
CONTINGENCIES AND COMMITMENTS 25
The annexed notes 1 to 49 and annexures I and II form an integral part of these unconsolidated financial statements.
Ashraf Mahmood Wathra Rehmat Ali Hasnie Abdul Wahid Sethi Ahsan Ali Chughtai Ali Syed
Chairman President & CEO Chief Financial Officer Director Director

UNCONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended December 31, 2023
2022 2023 2023 2022

Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees
-------------------------(US Dollars in '000)------------------------------------------------------------------------------------------------------------------------------------------------
in '000)--------------------------------
1,785,670 3,635,334 Mark-up / return / interest earned 26 1,024,657,648 503,310,285

1,371,187 3,036,642 Mark-up / return / interest expensed 27 855,910,064 386,483,771
414,483 598,692 Net mark-up / interest income 168,747,584 116,826,514
75,045 78,167 Fee and commission income 28 22,032,182 21,152,110

18,473 18,653 Dividend income 5,257,652 5,206,811
26,430 25,328 Foreign exchange income 7,139,106 7,449,563
- - Income / (loss) from derivatives - -
4,037 15,554 Gain on securities - net 29 4,384,060 1,137,947
6,164 6,363 Other income 30 1,793,465 1,737,445
130,149 144,065 Total non-mark-up / interest income 40,606,465 36,683,876
544,632 742,757 Total income 209,354,049 153,510,390
NON MARK-UP / INTEREST EXPENSES
277,087 331,177 Operating expenses 31 93,345,714 78,099,994

258 1,014 Other charges 32 285,940 72,626
277,345 332,191 Total non-markup / interest expenses 93,631,654 78,172,620
267,287 410,566 Profit before provisions 115,722,395 75,337,770

44,705 51,335 Provisions and write offs - net 33 14,469,305 12,600,607
222,582 359,231 PROFIT BEFORE TAXATION 101,253,090 62,737,163
114,691 175,309 Taxation 34 49,412,628 32,326,863

107,891 183,922 PROFIT AFTER TAXATION 51,840,462 30,410,300
-----------------------------(US
-------------------------------------------------------------------------------------------------------------------------------------------------(Rupees)------------------------------------
Dollars)-----------------------------------------------------------------------------------------------------------------------------------------------------
0.05 0.09 Basic earnings per share 35 24.37 14.29
0.05 0.09 Diluted earnings per share 36 24.37 14.29

UNCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2022 2023 2023 2022

--------------------------(US
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees
Dollars in '000)------------------------------------------------------------------------------------------------------------------------------------------------
in '000)--------------------------------
107,891 183,922 Profit after taxation for the year 51,840,462 30,410,300
Other comprehensive income / (loss)
Items that may be reclassified to profit and loss

account in subsequent periods:
30,908 34,568 Effect of translation of net investments in foreign branches 9,743,375 8,711,721
Movement in surplus / (deficit) on revaluation of
(85,652) 74,999 investments - net of tax 21,139,170 (24,141,899)
(54,744) 109,567 30,882,545 (15,430,178)
Items that will not be reclassified to profit and loss

Remeasurement loss on defined benefit obligations -

(11,102) (2,112) net of tax (595,239) (3,129,095)
Movement in (deficit) / surplus on revaluation of fixed
10,953 (1,483) assets - net of tax (418,066) 3,087,269
Movement in surplus / (deficit) on revaluation of non-
(1,110) 703 banking assets - net of tax 198,132 (312,906)
(1,259) (2,892) (815,173) (354,732)
51,888 290,597 Total comprehensive income 81,907,834 14,625,390

Reserves Surplus / (deficit) on
142
revaluation of assets
Share Unappropriated
General Revenue Fixed / Non- profit Total
capital Exchange Statutory Merger
loan loss general Total Investments Banking Total
translation reserve reserve
reserve reserve Assets
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------------------------------------------------------------------------
Balances as at January 01, 2022 21,275,131 12,577,854 38,928,501 343,802 8,000,000 521,338 60,371,495 19,888,217 44,593,905 64,482,122 140,073,817 286,202,565
Total Comprehensive income for the year
ended December 31, 2022
Profit after taxation for the year ended - - - - - - - - - - 30,410,300 30,410,300
December 31, 2022
Other comprehensive income - net of tax - 8,711,721 - - - - 8,711,721 (24,141,899) 2,774,363 (21,367,536) (3,129,095) (15,784,910)
Total Comprehensive Income - 8,711,721 - - - - 8,711,721 (24,141,899) 2,774,363 (21,367,536) 27,281,205 14,625,390
Transfer to statutory reserve - - 3,041,030 - - - 3,041,030 - - - (3,041,030) -

Transfer from surplus on revaluation of
assets to unappropriated profit - net of tax - - - - - - - - (197,684) (197,684) 197,684 -
Transfer to unappropriated profit - - - - (8,000,000) - (8,000,000) - - - 8,000,000 -
Adjustment of merger reserve - - - 19,804 - - 19,804 - - - - 19,804
-
Transactions with owners, recorded
directly in equity
Cash dividend paid (Rs. Nil per share) - - - - - - - - - - - -
Balance as at December 31, 2022 21,275,131 21,289,575 41,969,531 363,606 - 521,338 64,144,050 (4,253,682) 47,170,584 42,916,902 172,511,676 300,847,759
Profit after taxation for the year ended - - - - - - - - - - 51,840,462 51,840,462
December 31, 2023
Other comprehensive income - net of tax - 9,743,375 - - - - 9,743,375 21,139,170 (219,934) 20,919,236 (595,239) 30,067,372
Total Comprehensive Income - 9,743,375 - - - - 9,743,375 21,139,170 (219,934) 20,919,236 51,245,223 81,907,834
Transfer to statutory reserve - - 5,184,046 - - - 5,184,046 - - - (5,184,046) -
Transfer from surplus on revaluation of
assets to unappropriated profit - net of tax - - - - - - - - (181,545) (181,545) 181,545 -
-
Transactions with owners, recorded
directly in equity
Cash dividend paid (Rs. Nil per share) - - - - - - - - - - - -
Balance as at December 31, 2023 21,275,131 31,032,950 47,153,577 363,606 - 521,338 79,071,471 16,885,488 46,769,105 63,654,593 218,754,398 382,755,593
NATIONAL BANK
UNCONSOLIDATED STATEMENT OF CHANGES IN EQUITY
PAKISTAN
UNCONSOLIDATED CASH FLOW STATEMENT
2022 2023 2023 2022

--------------------------(US Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees
Dollars in '000)-----------------------------------------------------------------------------------------------------------------------------------------------
in '000)-------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
222,582 359,231 Profit before taxation 101,253,090 62,737,163
(18,473) (18,653) Less: Dividend income (5,257,652) (5,206,811)
204,109 340,578 95,995,438 57,530,352
Adjustments:
15,865 15,818 Depreciation 4,458,607 4,471,704
1,146 983 Amortization 277,042 323,149
44,705 51,335 Provision and write-offs 33 14,469,305 12,600,607
(152) - Gain on disposal of subsidiary and branch - (42,933)
(16) (888) Gain on sale of fixed assets (250,247) (4,441)
3,238 3,111 Finance charges on leased assets 876,989 912,754
Unrealized loss on revaluation of investments
2,173 117 classified as held-for-trading 33,066 612,481
29,640 42,286 Charge for defined benefit plans - net 11,918,752 8,354,267
96,599 112,762 31,783,514 27,227,588
300,708 453,340 127,778,952 84,757,940
(Increase) / decrease in operating assets
1,004,731 (571,765) Lendings to financial institutions (161,157,970) 283,194,208
124,961 147,279 Held-for-trading securities 41,512,120 35,221,594
(474,121) (685,599) Advances (193,243,387) (133,636,179)
(238,448) (285,899) Other assets (excluding advance taxation) (80,583,830) (67,209,195)
417,123 (1,395,984) (393,473,067) 117,570,428
Increase / (decrease) in operating liabilities
118,568 45,173 Bills payable 12,732,429 33,419,749
5,846,108 795,792 Borrowings from financial institutions 224,302,435 1,647,788,025
(1,252,288) 3,576,856 Deposits and other accounts 1,008,175,019 (352,970,685)
242,112 249,691 Other liabilities 70,378,196 68,241,777
4,954,500 4,667,512 1,315,588,079 1,396,478,866
(118,814) (192,002) Income tax adjusted / paid (54,117,686) (33,488,980)

(12,897) (13,033) Payments on account of staff retirement benefits (3,673,558) (3,635,107)
5,540,620 3,519,833 Net cash flow generated from operating activities 992,102,720 1,561,683,147
CASH FLOW FROM INVESTING ACTIVITIES

(5,441,692) (3,939,654) Net investments in available-for-sale securities (1,110,433,644) (1,533,799,090)
(309,614) 652,960 Net investments in held-to-maturity securities 184,043,825 (87,267,953)
18,473 18,653 Dividends received 5,257,652 5,206,811
(9,349) (9,600) Investments in fixed assets and intangibles (2,705,991) (2,635,099)
198 1,597 Proceeds from sale of fixed assets 449,996 55,915
33,566 37,597 Effect of translation of net investment in foreign branches 10,597,218 9,461,011
6,726 - Proceed from closure of subsidiary and branch - 1,041,531
(5,701,692) (3,238,447) Net cash flow used in investing activities (912,790,944) (1,607,936,874)
CASH FLOW FROM FINANCING ACTIVITIES

(8,615) (12,227) Payments of lease obligations (3,446,309) (2,428,160)
(1) (27) Dividend paid (7,567) (146)
(8,616) (12,254) Net cash flow used in financing activities 37.1 (3,453,876) (2,428,306)
(169,688) 269,132 Increase / (Decrease) in cash and cash equivalents 75,857,900 (48,682,033)
957,366 785,646 Cash and cash equivalents at beginning of the year 221,442,758 269,843,949
5,472 4,476 Effect of exchange rate changes on cash and cash equivalents 1,261,569 1,542,411
962,838 790,122 222,704,327 271,386,360
793,150 1,059,254 Cash and cash equivalents at end of the year 37 298,562,227 222,704,327

NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
1. STATUS AND NATURE OF BUSINESS
National Bank of Pakistan (the Bank) was incorporated in Pakistan under the National Bank of Pakistan
Ordinance, 1949 and is listed on the Pakistan Stock Exchange (PSX). Its registered and head office is situated
at I.I. Chundrigar Road, Karachi. The Federal Government and Pakistan Sovereign Wealth Fund (PSWF) holds
75.60% (2022: Federal Government and SBP 75.60%) shares of the Bank. The Bank is engaged in providing
commercial banking and related services in Pakistan and overseas. The Bank also handles treasury
transactions for the Government of Pakistan (GoP) as an agent to the SBP. The Bank operates 1,508 (2022:
1,512) branches in Pakistan including 188 (2022: 188) Islamic Banking branches and 18 (2022: 18) overseas
branches (including the Export Processing Zone branch, Karachi). The Bank also provides services in respect
of Endowment Fund for students loan scheme and IPS accounts.
2. BASIS OF PRESENTATION
2.1 In accordance with the directives of the Federal Government of Pakistan regarding the shifting of the banking
system to Islamic modes, the SBP has issued various circulars from time to time. Permissible forms of trade
related mode of financing include purchase of goods by banks from their customers and immediate resale to
them at appropriate mark-up in price on deferred payment basis. The purchases and sales arising under these
arrangements are not reflected in these unconsolidated financial statements as such but are restricted to the
amount of facility actually utilized and the appropriate portion of mark-up thereon.
Key financial figures of the Islamic banking branches of the Bank have been disclosed in annexure II to these
unconsolidated financial statements.
2.2 These are the unconsolidated financial statements of the Bank in which the investments in subsidiaries,
associates and joint ventures are stated at cost and have not been accounted for on the basis of reported
results and net assets of the investees which are done in the consolidated financial statements.
2.3 The US Dollar amounts shown on the statement of financial position, profit and loss account, statement of
comprehensive income and cash flow statement are stated as additional information solely for the convenience
of readers. For the purpose of conversion to US Dollars, the rate of Rs. 281.8607 to 1 US Dollar has been used
for 2023 and 2022 as it was the prevalent rate as on December 31, 2023.
3. STATEMENT OF COMPLIANCE
3.1 These unconsolidated financial statements have been prepared in accordance with the accounting and
reporting standards as applicable in Pakistan. The accounting and reporting standards applicable in Pakistan
comprise of:
- International Financial Reporting Standards (IFRS), issued by the International Accounting Standards
Board (IASB) as notified under the Companies Act, 2017;
- Islamic Financial Accounting Standards (IFAS), issued by the Institute of Chartered Accountants of
Pakistan as notified under the Companies Act, 2017;
- Provisions of and directives issued under the Banking Companies Ordinance, 1962 and the Companies
Act, 2017; and
- Directives issued by the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of
Pakistan (SECP).
Where the requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017, or the
directives issued by the SBP and the SECP differ with the requirements of IFRS or IFAS, the requirements of
the Banking Companies Ordinance, 1962, the Companies Act, 2017 and the said directives shall prevail.

3.2 SBP has deferred the applicability of International Accounting Standard (IAS) 39, ‘Financial Instruments:
Recognition and Measurement' and IAS 40, ‘Investment Property' for Banking Companies through BSD Circular
Letter No. 10 dated August 26, 2002. Moreover, SBP vide BPRD circular no. 4, dated February 25, 2015, has
deferred the applicability of Islamic Financial Accounting Standards (IFAS) 3, Profit and Loss Sharing on
Deposits. Further, according to the notification of SECP dated April 28, 2008, the IFRS - 7 "Financial
Instruments: Disclosures" has not been made applicable for banks. Accordingly, the requirements of these
standards have not been considered in the preparation of these unconsolidated financial statements. However,
investments have been classified and valued in accordance with the requirements of various circulars issued by
the SBP.
3.3 The SECP vide SRO 56 (1) / 2016 dated January 28, 2016, has notified that the requirements of IFRS 10
(Consolidated Financial Statements) and section 228 of the Companies Act, 2017 will not be applicable with
respect to the investment in mutual funds established under trust structure.
3.4 Application of new and revised International Financial Reporting Standards (IFRSs)
3.4.1 Standards, interpretations of and amendments to the published accounting and reporting standards
that are effective in the current year:
There are certain new and amended standards, interpretations and amendments that are mandatory for the
Bank's accounting periods beginning on January 1, 2023 but are considered not to be relevant or do not have
any significant effect on the Bank's operations and are therefore not detailed in these unconsolidated financial
statements.
that are not yet effective:
The following revised standards, amendments and interpretations with respect to the accounting and reporting
standards would be effective from the dates mentioned below against the respective standards, amendments or
interpretations:
Effective from accounting

Standards, interpretations or amendments period beginning on or after
- IFRS 9 - ‘Financial instruments' January 01, 2024
- IAS 21 - ‘Lack of exchangeability' (amendments) January 01, 2025
- IAS 1 - ‘Non current liabilities with covenants' (amendments) January 01, 2024
- IFRS 16 - ‘Sale and leaseback' (amendments) January 01, 2024
3.4.3 The SBP vide its BPRD Circular No. 02 of 2023 dated February 9, 2023 has specified the new reporting format
for financial statements of Banking Companies. The new format has revised the disclosure requirements and
will become applicable for the financial statements of the Bank for the quarter ending March 31, 2023. However,
SBP vide its BPRD circular No. 07 of 2023 has deferred the applicability from January 01, 2023 to January 01,
2024.
3.4.4 Other than the aforesaid standards, interpretations and amendments, the International Accounting Standards
Board (IASB) has also issued the following standards which have not been adopted locally by the Securities
and Exchange Commission of Pakistan:
- IFRS 1 – First Time Adoption of International Financial Reporting Standards
- IFRS 17 – Insurance Contracts

3.4.5 The management anticipates that these new standards, interpretations and amendments will be adopted in the
Bank’s unconsolidated financial statements as and when they are applicable and adoption of these new
standards, interpretations and amendments, may have no material impact on these unconsolidated financial
statements of the Bank in the period of initial application.
3.4.6 IFRS 9 Financial Instruments:
As directed by SBP via BPRD Circular no 07 of 2023, IFRS 9 Financial Instruments is effective for periods
beginning on or after 1 January 2024 for banks having asset base of more than Rs. 500 billion as at 31
December 2022. SBP via same circular has finalized the instructions on IFRS 9 (Application Instructions) for
ensuring smooth and consistent implementation of the standard in the banks.
During the 2023, the management of the Bank has performed an impact assessment of IFRS 9 taking into
account the SBP’s IFRS 9 application instructions. The assessment is based on available information and may
be subject to changes arising from further reasonable and supportable information being made available to the
Bank at the time of finalizing the impact for initial application of IFRS 9. In addition, the Bank will implement
changes in classification of certain financial instruments. These changes and impacts are discussed below:
An overview of the IFRS 9 requirements that are expected to have significant impact are discussed below along
with the additional requirements introduced by the SBP:
Governance, ownership and responsibilities
The Bank has adopted a governance framework requiring the Risk, Finance, Operations, Internal Audit and IT
functions to effectively work together to ensure input from all business lines. IFRS 9 requires robust credit risk
models that can predict Probability of Default (PD), Loss Given Default (LGD) and Exposure at Default (EAD).
Risk Management Division has develop Models/ methodologies for PD, LGD and Credit Conversion Factor
(CCF). These models shall be validated on annual basis considering the following aspects:
- Quantitative Validation: Expected credit loss (ECL) model design validation, data quality validation and
benchmarking with external best practices.
- Quantitative Validation: Calibration testing which ensures the accuracy of the observed PDs.
Finance Group will ensure preparation of disclosures and incorporation of the impacts on the financial
statements of the Bank. The function shall identify, prepare and extract the data required for the risk parameters
modelling and ECL calculations. Finance Group shall ensure that all disclosures as required by the accounting
standard and the SBP formats and guidelines are made.
The risk management division will perform the back testing of ECL at least on yearly basis and will be
responsible for the independent validation of the risk parameters / risk models; including PD, LGD and CCF etc.,
that are used to compute the ECL which would be carried out as per the policy.
Internal Audit will carry out periodic review of IFRS 9 methodology and impacts calculated by the Management.
Classification and measurement
The classification and measurement of financial assets will depend on how these are managed (the entity’s
business model) and their contractual cash flow characteristics. Financial assets that do not meet the SPPI
criteria are measured at FVTPL regardless of the business model in which they are held. The Bank’s s business
model in which financial assets are held will determine whether the financial assets are measured at amortised
cost, fair value through other comprehensive income (‘FVOCI’) or fair value through profit or loss (‘FVPL’). The
classification of equity instruments is generally measured as Fair Value through Profit & Loss (FVTPL) unless
the Bank elects for Fair Value through Other Comprehensive Income (FVTOCI) at initial recognition. The Bank
has analyzed the impact of initial application of IFRS 9 on its financial assets as follows:

Equity Securities
The Bank expects to continue measuring at fair value all financial assets currently held at fair value.
For certain listed equity securities currently classified as available-for-sale (AFS) with gains and losses recorded
in OCI, the Bank will apply the option to classify them as FVOCI. Therefore, the application of IFRS 9 will not
have an impact on initial adoption. However, in accordance with the requirements of the standard, gains and
losses recognized in OCI will not be recycled through the profit and loss account on derecognition of these
securities.
The remaining listed equity securities will be measured at FVTPL. The AFS reserve related to those securities is
currently part of Surplus on Revaluation of Assets and will be reclassified to retained earnings hence, there will
be no impact on overall equity.
Unquoted equity securities are required to be measured at fair value under IFRS 9. However, the SBP has
allowed banks to carry these investments under the current Prudential Regulations, i.e. at the lower of cost and
break-up value, till accounting periods beginning on or after January 1, 2024.
Debt securities and Loans and advances
Debt securities currently classified as AFS and those passes SPPI test, are expected to be measured at fair
value through OCI under IFRS 9 as the Bank’s business model is to hold the assets to collect contractual cash
flows, but also to sell those investment. Debt securities currently classified as HTM and those passes SPPI test
are expected to be measured at amortized costs under IFRS 9 as the Group business model is to hold the
assets to collect contractual cash flows.
Cashflows of certain debt instruments classified in AFS or / and HTM categories, do not expect to give risk to
cash flows representing solely payments of principal and interest and accordingly, these would be measured at
fair value through profit and loss.
Impairment
The impairment requirements apply to financial assets measured at amortised cost and FVOCI (other than
equity instruments), lease receivables, and certain loan commitments and financial guarantee contracts. At
initial recognition, an impairment allowance (or provision in the case of commitments and guarantees) is
required for expected credit losses (‘ECL’) resulting from default events that are possible within the next 12
months (‘12-month ECL’). In the event of a significant increase in credit risk, an allowance (or provision) is
required for ECL resulting from all possible default events over the expected life of the financial instrument
(‘lifetime ECL’). Financial assets where 12-month ECL is recognised are in ‘stage 1’; financial assets that are
considered to have experienced a significant increase in credit risk are in ‘stage 2’; and financial assets for
which there is objective evidence of impairment, so are considered to be in default or otherwise credit impaired,
are in ‘stage 3’.
The assessment of credit risk and the estimation of ECL are required to be unbiased and probability-weighted,
and should incorporate all available information which is relevant to the assessment including information about
past events, current conditions and reasonable and supportable forecasts of economic conditions at the
reporting date. In addition, the estimation of ECL should take into account the time value of money.
Based on the requirement of IFRS 9 and SBP’s IFRS 9 application instructions, the Bank has performed an ECL
assessment taking into account the key elements such as assessment of SCIR, Probability of Default, Loss
Given Default and Exposure at Default. These elements are described below:
- PD: The probability that a counterparty will default, calibrated over the 12 months from the reporting date
(stage 1) or over the lifetime of the product (stage 2) and incorporating forward looking information.

- LGD: An estimate of the loss incurred on a facility upon default by a customer. LGD is calculated as the
difference between contractual cash flows due and those that the Bank expects to receive, including from
the liquidation of any form of collateral. It is expressed as a percentage of the exposure outstanding on the
date of classification of an obligor.
- EAD: The expected balance sheet exposure at the time of default, incorporating expectations on
drawdowns, amortisation, pre-payments and forward-looking information where relevant.
For the purpose of calculation of ECL, the Bank has used 5 years data till 31 December 2022 and going
forward, one more year’s data shall be included until the Bank has at least 10 years data. For calculating ECL,
the Bank shall classify its financial assets under three following categories:
a) Stage 1: Performing Assets: Financial assets where there has not been a SICR since initial recognition, the
Bank shall recognize an allowance based on the 12-month ECL.
b) Stage 2: Under-Performing Assets: For financial assets where there has been a SICR since initial
recognition, but which are not credit impaired, the Bank shall recognize an allowance based on lifetime ECL
for all exposures categorized in this stage based on the actual maturity profile.
c) Stage 3: Non-Performing Assets: For financial assets which have objective evidence of impairment at the
reporting date, the Bank shall recognize ECL on these financial assets using the higher off approach, which
means that lifetime ECL computed under IFRS 9 is compared with regulatory provision required as per
Prudential regulations.
As required by the Application Instructions, financial assets may be reclassified out of stage 3 if they meet the
requirements of Prudential Regulations (PR) issued by SBP. Financial assets in stage 2 may be reclassified to
stage 1 if the conditions that led to a SICR no longer apply.
Significant increase in credit risk (SICR)
A SICR is assessed in the context of an increase in the risk of a default occurring over the life of the financial
instrument when compared to that expected at the time of initial recognition. It is not assessed in the context of
an increase in the ECL. The Bank uses a number of qualitative and quantitative measures in assessing SICR.
Quantitative measures relate to deterioration of Obligor Risk Ratings (ORR) or where principal and / or interest
payments are 60 days or more past due. Qualitative factors include unavailability of financial information and
pending litigations.
Based on the level of increase in credit risk, the Bank shall calculate 12 month ECL for assets which did not
have a SICR i.e., Stage 1 or a lifetime expected loss for the life of the asset (for assets which demonstrated a
SICR) i.e., Stage 2.
At every reporting date, the Bank shall assess whether there has been a SICR since the initial recognition of the
asset. If there is a SICR, the asset must be assigned to the appropriate stage of credit impairment (Stage 2 or
3).
Under the SBP’s instructions, credit exposure (in local currency) guaranteed by the Government and
Government Securities are exempted from the application of ECL Framework. Moreover, until implementation of
IFRS 9 has stabilized, Stage 1 and stage 2 provisions would be made as per IFRS 9 ECL and stage 3 provision
would be made considering higher of IFRS 9 ECL or provision computed under existing PRs’ requirements.
Presentation and disclosure
IFRS 9 also introduces expanded disclosure requirements and changes in presentation which will be
incorporated as per the SBP’s revised format.

Loan / financing related fee
Loan origination / commitment fees that are regarded as compensation to the lender for an ongoing involvement
with the acquisition of a financial instrument would be recognized over the life of the related loan. However, if
the commitment expires without the lender making the loan, the fee would be recognised as revenue as earned.
Impact of adoption of IFRS 9
The actual impact of adopting IFRS 9 on the Bank’s financial statements in the year 2024 may not be accurately
estimated because it will be dependent on the financial instruments that the Bank would hold during 2024 and
economic conditions at that time as well as accounting elections and judgements that it will make in future.
Nevertheless, the Bank has performed a preliminary assessment of the potential impact of adoption of IFRS 9
based on its statement of financial position as at December 31, 2023.
Based on the bank’s assessment, the IFRS 9 requirements are expected to have the following impact on the
classification and measurement of its financial assets and financial liabilities:
1. Debt instruments amounting to Rs 15,987 million have been reclassified from Available for Sale to Fair
Value through Profit or Loss.
2. Equity instruments amounting to Rs 28,507 million have been reclassified from Available for Sale to Fair
Value through Profit or Loss.
Impairment
The total estimated adjustment (net of tax) of the adoption of IFRS 9 on the opening balance of the Bank's
equity at January 01, 2024 is a decrease of approximately Rs 8,177 million, representing;
- a decrease of Rs 13,808 million in equity due to increase in ECL.
- an increase of Rs 5,631 million in equity resulting from reclassification of investments as mentioned above.
Impact on regulatory capital
The implementation of IFRS 9 is expected to result in reduced regulatory capital of the Bank, which is likely to
reduce their lending capacity and ability to support their clients. In order to mitigate the impact of expected credit
loss (ECL) models on capital, SBP has determined that it may be appropriate for the Financial Institutions (FIs)
to follow a transitional arrangement for the impact on regulatory capital from the application of ECL accounting.
Annexure B of the ‘Application Instructions' issued by SBP vide BPRD Circular No.3 of 2022 dated July 05,
2022, have detailed the transitional arrangement.
The transitional arrangement must apply only to provisions for stage 1 and 2 financial assets. The transitional
arrangement must only adjust CET1 capital. Where there is a reduction in CET1 capital due to new provisions,
net of tax effect, upon adoption of an ECL accounting model, the decline in CET1 capital (the “transitional
adjustment amount”) must be partially included (i.e. added back) to CET1 capital over the “transition period” of
five years.
The impact of adoption of IFRS 9 on the capital ratios of the Bank are as follows:
As per adopted As per current
IFRS 9 ARS
Common Equity Tier 1 Capital Adequacy ratio 19.04% 19.16%
CET1 available to meet buffers (as a percentage of risk weighted assets) 9.04% 9.16%

4. BASIS OF MEASUREMENT
These unconsolidated financial statements have been prepared under the historical cost convention except for
revaluation of land and buildings and non-banking assets acquired in satisfaction of claims which are stated at
revalued amount and certain investments and derivative financial instruments that are carried at fair value. In
addition, obligations in respect of defined benefit plan are carried at the present values.
5. MATERIAL ACCOUNTING POLICIES
The accounting policy adopted in preparation of these unconsolidated financial statements are consistent with
those of the previous financial year.
5.1 Cash and cash equivalents
Cash and cash equivalents include cash and balances with treasury banks, balances with other banks and call
money lendings, less call borrowings and overdrawn nostro accounts.
5.2 Investments
Investments other than those categorised as held-for-trading are initially recognised at fair value which includes
transaction costs associated with the investments. Investments classified as held-for-trading are initially
recognised at fair value, and transaction costs are expensed in the profit and loss account.
All regular way purchases / sales of investments are recognised on the trade date, i.e., the date the Bank
commits to purchase / sell the investments. Regular way purchases or sales of investments require delivery of
securities within the time frame generally established by regulation or convention in the market place.
The Bank has classified its investment portfolio, except for investments in subsidiaries, associates and joint
ventures into ‘held-for-trading’, ‘held-to-maturity’ and ‘available-for-sale’ as follows:
- Held-for-trading – These are securities which are acquired with the intention to trade by taking advantage of
short-term market / interest rate movements and are to be sold within ninety (90) days. These are carried at
market value, with the related unrealised gain / (loss) on revaluation being taken to profit and loss account.
- Held-to-maturity – These are securities with fixed or determinable payments and fixed maturity that are held
with the intention and ability to hold to maturity. These are carried at amortised cost.
- Available-for-sale – These are investments that do not fall under the held-for-trading or held-to-maturity
categories. These are carried at market value except in case of unquoted securities where market value is
not available, which are carried at cost less provision for diminution in value, if any. Surplus / (deficit) on
revaluation is taken to ‘surplus / (deficit) on revaluation of assets’ account shown in equity. Provision for
diminution in value of investments in respect of unquoted shares is calculated with reference to break-up
value of the same. On derecognition or impairment in quoted available-for-sale investments, the cumulative
gain or loss previously reported as 'surplus / (deficit) on revaluation of assets' in equity is included in the
profit and loss account for the year.
- Provision for diminution in value of investments in unquoted debt securities is calculated as per the SBP's
Prudential Regulations.
- Held-for-trading and quoted available-for-sale securities are marked to market with reference to ready
quotes on Reuters page or MUFAP (PKRV / PKISRV / PKFRV) or the Stock Exchanges, as the case may
be.
- Investments in subsidiaries, associates and joint venture companies are stated at cost. Provision is made
for impairment in value, if any.

5.3 Repurchase and resale agreements
Securities sold with a simultaneous commitment to repurchase at a specified future date (repos) continue to be
recognised in the statement of financial position and are measured in accordance with accounting policies for
investment securities. The counterparty liability for amounts received under these agreements is included in
borrowings. The difference between sale and repurchase price is treated as mark-up / return / interest expense
and accrued over the life of the repo agreement using effective yield method.
Securities purchased with a corresponding commitment to resell at a specified future date (reverse repos) are
not recognised in the statement of financial position, as the Bank does not obtain control over the securities.
Amounts paid under these agreements are included in lendings to financial institutions. The difference between
purchase and resale price is treated as mark-up / return / interest income and accrued over the life of the
reverse repo agreement using effective yield method.
5.4 Derivative financial instruments
Derivative financial instruments are initially recognised at fair value on the dates on which the derivative
contracts are entered into and are subsequently re-measured at fair value using appropriate valuation
techniques. All derivative financial instruments are carried as assets when fair value is positive and liabilities
when fair value is negative. Any change in the fair value of derivative instruments during the year is taken to the
profit and loss account.
5.5 Financial instruments
All financial assets and financial liabilities are recognised at the time when the Bank becomes a party to the
contractual provisions of the instrument. A financial asset is derecognised where (a) the rights to receive cash
flows from the asset have expired; or (b) the Bank has transferred its rights to receive cash flows from the asset
or has assumed an obligation to pay the received cash flows in full without material delay to a third party under
a 'pass-through' arrangement; and either (i) the Bank has transferred substantially all the risks and rewards of
the asset, or (ii) the Bank has neither transferred nor retained substantially all the risk and rewards of the asset,
but has transferred control of the asset. A financial liability is derecognised when the obligation under the liability
is discharged or cancelled or expires. Any gain or loss on derecognition of the financial assets and financial
liabilities is taken to profit and loss account.
5.6 Advances
Advances are stated net of specific and general provisions. Provisions are made in accordance with the
requirements of Prudential Regulations issued by the SBP and charged to the profit and loss account. These
regulations prescribe a time based criteria (as supplemented by subjective evaluation of advances by the
banks) for classification of non-performing loans and advances and computing provision there against. Such
regulations also require the Bank to maintain general provision against consumer and Small and Medium
Enterprises (SME) advances at specified percentage of such portfolio. General provision for loan losses of
overseas branches is made as per the requirements of the respective central banks. Advances are written off
where there are no realistic prospects of recovery. The amounts so written off are a book entry and does not
necessarily prejudice the Bank's right of recovery against the customers. The Bank determines write-offs in
accordance with the criteria as prescribed by SBP vide BPRD circular no. 06 dated June 05, 2007.
5.6.1 Islamic financing and related assets
Under Murabaha financing, funds disbursed for the purchase of goods are recorded as advance against
Murabaha finance and the financing is recorded at the deferred sale price. Goods purchased but remaining
unsold at the statement of financial position date are recorded as inventories.

Assets given on Ijarah are stated at cost less accumulated depreciation and accumulated impairment losses, if
any. Ijarah assets are depreciated on a reducing balance basis over the term of the Ijarah after taking into
account the estimated residual value. Impairment of Ijarah assets is recognised in line with the Prudential
Regulations or upon the occurrence of an impairment event which indicates that the carrying value of the Ijarah
asset may exceed its recoverable amount.
In Running Musharakah, the Bank and the customer enter into a Musharakah agreement where the Bank
agrees to finance the operating activities of the customer's business and share in the profit or loss in proportion
to an agreed ratio at an agreed frequency.
Under Diminishing Musharakah financing, the Bank creates joint ownership with the customer over the tangible
assets to fulfill capital expenditure / project requirements. The Bank receives periodic payments from the
customer against the gradual transfer of its share of ownership to the customer.
In Istisna transactions, the Bank finances the cost of goods manufactured by the customer. Once the goods are
manufactured, these are sold by the customer as an agent of the Bank to recover the cost plus the agreed
profit.
Under Tijarah, the Bank purchases the finished goods from the customer against payment, takes possession
and appoint customer as an agent to sell these goods to ultimate buyer on deferred payment basis. Profit is
recognized on accrual basis over the period of transaction.
Wakalah is an agency contract in which Bank provides funds to the customer who invests it in a Shariah
compliant manner.
In Musawamah financing, the Bank purchases the goods and after taking the possession, sells them to the
customer either in spot or credit transaction, without disclosing the cost.
5.7 Fixed assets and depreciation
5.7.1 Property and equipment
5.7.1.1 Owned assets
Property and equipment, except land and buildings, are stated at cost less accumulated depreciation and
accumulated impairment losses, if any. Land is stated at revalued amount. Buildings are stated at revalued
amount less accumulated depreciation and impairment, if any. The cost and the accumulated depreciation of
property and equipment of foreign branches include exchange differences arising on currency translation at the
year-end rates. Depreciation is charged to profit and loss account applying the straight line method except
buildings, which are depreciated on diminishing balance method at the rates stated in note 12.2. Depreciation
on addition is charged from the month in which the assets are available for use and no depreciation is charged
in the month the assets are disposed off.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the Bank
and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All
other repairs and maintenance are charged to the profit and loss account during the period in which they are
incurred.
Assets are derecognised when disposed off or when no future economic benefits are expected from its use or
disposal. Gains and losses on disposal of property and equipment are included in profit and loss account.
The assets' residual values and useful lives are reviewed annually, and adjusted if appropriate, at statement of
financial position date.

Land and buildings' valuations are carried out by professionally qualified valuers with sufficient regularity to
ensure that their carrying amounts do not differ materially from their fair value.
- Any revaluation increase arising on the revaluation of such assets is recognised in the statement of
comprehensive income and accumulated in equity, except to the extent that it reverses a revaluation
decrease for the same asset previously recognised in profit and loss account, in which case the increase is
credited to profit and loss account to the extent of the decrease previously expensed. A decrease in the
carrying amount arising on the revaluation of such assets is recognised in profit and loss account to the
extent that it exceeds the balance, if any, held in “Surplus on Revaluation of Fixed Assets” relating to a
previous revaluation of that asset.
- Depreciation on assets which are revalued is determined with reference to the value assigned to such
assets on revaluation and depreciation charge for the year is taken to the profit and loss account.
- An amount equal to incremental depreciation for the year net of associated deferred tax is transferred from
“Surplus on Revaluation of Fixed Assets” to unappropriated profit through statement of changes in equity to
record realization of surplus to the extent of the incremental depreciation charge for the year.
- On the subsequent sale or retirement of a revalued asset, the attributable revaluation surplus remaining in
the revaluation reserve is transferred directly to unappropriated profit.
5.7.2 Capital work-in-progress
Capital work-in-progress is stated at cost less accumulated impairment losses, if any. These are transferred to
specific assets as and when assets are available for use.
5.7.3 Impairment
The carrying values of fixed assets are reviewed for impairment when events or changes in circumstances
indicate that the carrying values may not be recoverable. If any such indication exists and where the carrying
values exceed the estimated recoverable amounts, fixed assets are written down to their recoverable amounts.
The resulting impairment loss is taken to profit and loss account except for impairment loss on revalued assets
which is adjusted against the related revaluation surplus to the extent that the impairment loss does not exceed
the surplus on revaluation of assets. Where impairment loss subsequently reverses, the carrying amount of the
asset is increased to the revised recoverable amount but limited to the extent of the amount which would have
been determined had there been no impairment. Reversal of impairment loss is recognised as income in profit
and loss account.
5.8 Lease liability and right-of-use assets
The lease liabilities are initially measured at the present value of lease payments that includes:
- fixed payments (including in-substance fixed payments), less any lease incentives receivable;
- variable lease payment that are based on an index or a rate as at the commencement date;
- amounts expected to be payable by the lessee under residual value guarantees, if any;
- the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
- payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
The lease payments are to be discounted using the incremental borrowing rate being the rate that the Bank
would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic
environment with similar terms and conditions.

On initial recognition, right-of-use assets are measured at cost comprising the following:
- the amount of the initial measurement of lease liability;
- any lease payments made at or before the commencement date less any lease incentives received;
- any initial direct costs incurred; and
- an estimate of restoration costs.
The Bank leases various offices / branches for the purpose of its operational activities. Rental contracts are
typically made for fixed periods of 3 to 10 years. Lease terms are negotiated on an individual basis and contain
a wide range of different terms and conditions. The lease agreements do not impose any covenants, but leased
assets may not be used as security for borrowing purposes.
5.9 Intangible assets
Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses, if any.
The cost and the accumulated amortisation of intangible assets of foreign branches include exchange
differences arising on currency translation at the year-end rates. Amortisation is charged to profit and loss
account applying the straight-line method at the rates stated in note 13. Amortisation on addition is charged
from the month in which the assets are available for use and no amortisation is charged in the month the
intangible assets are disposed off. The estimated useful life and amortisation method are reviewed at the end of
each annual reporting period, with the effect of any changes in estimate being accounted for on a prospective
basis.
5.10 Non-banking assets acquired in satisfaction of claims
In accordance with the requirements of the ‘Regulations for Debt Property Swap' (the regulations) issued by
SBP vide its BPRD Circular No. 1 of 2016, dated January 1, 2016, the non-banking assets acquired in
satisfaction of claims are carried at revalued amounts less accumulated depreciation. These assets are
revalued by professionally qualified valuers with sufficient regularity to ensure that their net carrying value does
not differ materially from their fair value. A surplus arising on revaluation is credited to the 'surplus on
revaluation of assets' account and any deficit arising on revaluation is taken to the profit and loss account
directly. Legal fees, transfer costs and direct costs of acquiring title to property is charged to profit and loss
account and not capitalized. Depreciation on non-banking assets acquired in satisfaction of claims is charged to
the profit and loss account on the same basis as depreciation charged on the Bank's owned fixed assets.
5.11 Deposits and their cost
Deposits are recorded at the fair value of proceeds received.
Deposit costs are recognised as an expense in the period in which these are incurred using effective yield
method.
5.12 Taxation
5.12.1 Current
Provision of current taxation is based on taxable income for the year determined in accordance with the
prevailing laws of taxation on income earned for local as well as foreign operations, as applicable to the
respective jurisdictions. The charge for the current tax also includes adjustments wherever considered
necessary relating to prior years, arising from assessments framed during the year.

5.12.2 Deferred
Deferred tax is provided on all temporary differences at the reporting date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses, to the extent
that it is probable that taxable profits will be available against which the deductible temporary differences and
unused tax losses can be utilized. Deferred tax is not recognised on differences relating to investment in
subsidiaries and branches to the extent the deductible temporary difference probably will not reverse in the
foreseeable future.
The carrying amount of deferred tax assets are reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit or deductible temporary differences will be available to allow
all or part of the deferred income tax asset to be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Deferred tax relating to gain / loss recognised on surplus on revaluation of assets is charged / credited to such
account.
5.13 Employee benefits
5.13.1 Defined benefit plans
The Bank operates an approved funded pension scheme, an un-funded post retirement medical benefits
scheme and an un-funded benevolent scheme for its eligible employees. The Bank also operates an un-funded
gratuity scheme for its eligible contractual employees. An actuarial valuation of all defined benefit schemes is
conducted every year. The valuation uses the Projected Unit Credit method. Remeasurements of the net
defined benefit liability / assets which comprise actuarial gains and losses, return on plan assets (excluding
interest) and the effect of asset ceiling (if any, excluding interest) are recognised immediately in other
comprehensive income. Past-service costs are recognised immediately in profit and loss account when the plan
amendment occurs.
5.13.2 Other employee benefits
Employees' compensated absences
The Bank also makes provision in the financial statements for its liability towards compensated absences. This
liability is estimated on the basis of actuarial advice under the Projected Unit Credit method.
5.14 Revenue recognition
Income on loans and advances and debt security investments are recognised on a time proportion basis that
takes into account effective yield on the asset. In case of advances and investments classified under the
Prudential Regulations, interest / mark-up is recognised on receipt basis.
Interest / mark-up on rescheduled / restructured advances and investments is recognized in accordance with
the Prudential Regulations issued by SBP.
Fee, brokerage and commission income other than commission on letter of credit and guarantees is recognised
upon performance of services.

Commission on letters of credit and guarantees is recognized on time proportion basis.
Dividend income on equity investments and mutual funds is recognised when right to receive is established.
Premium or discount on debt securities classified as held-for-trading, available-for-sale and held-to-maturity

securities is amortised using the effective interest method and taken to profit and loss account.
Gains and losses on disposal of investments and fixed assets are dealt with through the profit and loss account
in the year in which they arise.
Income from lease financing is accounted for using the financing method. Under this method, the unearned
lease income (defined as the sum of total lease rentals and estimated residual value less the cost of the leased
assets) is deferred and taken to income over the term of the lease so as to produce a constant periodic rate of
return on the outstanding net investment in the lease. Gains or losses on termination of lease contracts are
recognised through the profit and loss account when these are realised. Unrealised lease income and other
fees on classified leases are recognised on a receipt basis.
5.15 Net investment in finance lease
Leases where the bank transfers substantially all the risk and rewards incidental to ownership of the assets to
the lessee are classified as finance leases. Net investment in finance lease is recognised at an amount equal to
the aggregate of present value of minimum lease payment including any guaranteed residual value and
excluding unearned finance income, write-offs and provision for doubtful lease finances, if any.
5.16 Foreign currencies translation
The Bank's financial statements are presented in Pak Rupees (Rs.) which is the Bank's functional and
presentation currency.
Foreign currency transactions are converted into Rupees applying the exchange rate at the date of the
respective transactions. Monetary assets and liabilities in foreign currencies and assets / liabilities of foreign
branches are translated into Rupees at the rates of exchange prevailing at the statement of financial position
date. Forward foreign exchange contracts are valued at the rates applicable to their respective maturities. All
gains or losses on dealing in foreign currencies are taken to the profit and loss account.
Profit and loss account balances of foreign branches are translated at average exchange rate prevailing during
the year. Gains and losses on translation are included in the profit and loss account except gains / losses
arising on translation of net assets of foreign branches, which is credited to the statement of comprehensive
income.
Statement of financial position balances of foreign branches are translated at exchange rate prevailing at
statement of financial position date. Gains and losses on translation are included in the profit and loss account
except gains / losses arising on translation of net assets of foreign branches, which is credited to the statement
of comprehensive income.
Commitments for outstanding forward foreign exchange contracts are disclosed in these unconsolidated
financial statements at committed amounts. Contingent liabilities / commitments for letters of credit and letters of
guarantee denominated in foreign currencies are expressed in Rupee terms at the rates of exchange prevailing
at the statement of financial position date.
5.17 Provision for off balance sheet obligations
Provision for guarantees, claims and other off balance sheet obligations is made when the Bank has legal or
constructive obligation as a result of past events, it is probable that an outflow of resources will be required to
settle the obligation and a reliable estimate of amount can be made. Charge to profit and loss account is stated
net of expected recoveries.

5.18 Off setting
Financial assets and financial liabilities are only set off and the net amount is reported in the unconsolidated
financial statements when there is a legally enforceable right to set off and the Bank intends either to settle on a
net basis, or to realise the assets and to settle the liabilities simultaneously.
5.19 Fiduciary assets
Assets held in a fiduciary capacity are not treated as assets of the Bank in the statement of financial position.
5.20 Dividend and other appropriations
Dividend and other appropriation to reserves, except appropriations which are required by the law, are
recognised in the Bank's unconsolidated financial statements in the year in which these are approved.
5.21 Earnings per share
The Bank presents basic and diluted earnings per share (EPS) for its shareholders. Basic EPS is calculated by
dividing the profit or loss attributable to ordinary shareholders of the Bank by the weighted average number of
ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss
attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the
effects of all dilutive potential ordinary shares, if any. There were no dilutive potential ordinary shares in issue at
December 31, 2023.
5.22 Bai Muajjal
Bai Muajjal transactions represent sales of Sukuks on a deferred payment basis and are shown in lendings to
financial institutions except for transactions undertaken directly with the Government of Pakistan which are
disclosed as investments.
The difference between the deferred payment amount receivable and the carrying value at the time of sale is
accrued and recorded as income over the life of the transaction.
5.23 Acceptances
Acceptances comprise undertakings by the Bank to pay bill of exchange drawn on customers. Acceptances are
recognised as financial liability in the statement of financial position with a contractual right of reimbursement
from the customer as a financial asset. Therefore, commitments in respect of acceptances have been
accounted for as on balance sheet financial assets and financial liabilities.
5.24 Segment reporting
A segment is a distinguishable component of the Bank that is subject to risks and rewards that are different from
those of other segments. A business segment is one that is engaged either in providing certain products or
services, where as a geographical segment is one engaged in providing certain products or services within a
particular economic environment. Segment information is presented as per the Bank’s functional and
management reporting structure.
Business segments
The Bank's primary segment reporting is based on the following business segments:
I. Retail Banking Group includes retail lending and deposits, banking services, cards and branchless
banking.
II. Inclusive Development Group consists of loans to individuals, agriculture, SME, commodity and
commercial customers.

III. Corporate and Investment Banking Group offers a wide range of financial services to medium and large
sized public and private sector entities. These services include, providing and arranging tenured financing,
corporate advisory, underwriting, cash management, trade products, corporate finance products and
customer services.
IV. Treasury includes fixed income, equity, foreign exchange, credit, funding, own position securities, lendings
and borrowings and derivatives for hedging and market making.
V. International Financial Institution and Remittance Group includes the results of all international
branches, correspondent banking business and global remittances. This represents Bank’s operations in 13
countries including Pakistan and 18 branches including one branch in export processing zone in Pakistan.
VI. Aitemaad and Islamic Banking Group provides shariah compliant services to customers including loans,
deposits and other transactions.
VII. Head Office / Others includes the head office related activities and other functions which cannot be
classified in any of the above segments.
Geographical segments
The Bank is managed along the following geographic lines for monitoring and reporting purposes:
I. Pakistan (including branch in Export Processing Zone)
II. Asia Pacific (including South Asia)
III. Europe
IV. United States of America
V. Middle East
5.25 Accounting estimates and judgments
The preparation of the unconsolidated financial statements in conformity with the approved accounting and
reporting standards as applicable in Pakistan requires the use of certain critical accounting estimates. It also
requires management to exercise its judgment in the process of applying the Bank’s accounting polices. The
estimates, judgments and associated assumptions used in the preparation of the unconsolidated financial
statements are based on historical experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. The key areas of estimates and judgments in relation to
these unconsolidated financial statements are as follows:
a) Provision against non-performing loans and advances
The Bank reviews its loan portfolio to assess amount of non-performing loans and determine provision
required there against on a quarterly basis. While assessing this requirement, various factors including the
past dues, delinquency in the account, financial position and future business / financial plan of the
borrower, value of collateral held and requirements of Prudential Regulations are considered. The Bank
also considers the effect of Forced Sale Value (FSV) of collaterals in determining the amount of provision,
however, no benefit of FSV of collateral has been taken during the year in determining provisioning amount.
General provision for loan losses of overseas branches is made as per the requirements of the respective
central banks.
The amount of general provision against domestic consumer and SME advances is determined in
accordance with the relevant Prudential Regulations and SBP directives.

In addition, the Bank has also made general provision in respect of its corporate portfolio on prudent basis.
This general provision is in addition to the requirements of Prudential Regulations.
b) Fair value of derivatives
The fair values of derivatives which are not quoted in active markets are determined by using valuation
techniques. The valuation techniques take into account the relevant interest and exchange rates over the
term of the contract.
c) Impairment of available-for-sale investments
The Bank considers that available-for-sale equity investments and mutual funds are impaired when there
has been a significant or prolonged decline in the fair value below its cost except for investments where
relaxation has been allowed by SBP. This determination of what is significant or prolonged requires
judgment. In addition, impairment may be appropriate when there is evidence of deterioration in the
financial health of the investee, industry and sector performance.
Further the Bank has developed internal criteria according to which a decline of 30% in the market value of
any scrip below its cost shall constitute as a significant decline and where market value remains below the
cost for a period of one year shall constitute as a prolonged decline.
Provisions for impairment in value of debentures, term finance certificates and sukuk bonds are made as
per the requirements of the Prudential Regulations issued by the SBP.
d) Held-to-maturity investments
The Bank follows the guidance provided in the SBP circulars on classifying non-derivative financial assets
with fixed or determinable payments and fixed maturity as held-to-maturity. In making this judgment, the
Bank evaluates its intention and ability to hold such investments till maturity.
e) Income taxes
In making the estimates for current and deferred taxes, the management looks at the income tax law and
the decisions of appellate authorities on certain issues in the past. There are certain matters where the
Bank’s view differs with the view taken by the income tax department and such amounts are shown as
contingent liabilities.
f) Fixed assets, Non-Banking asset and intangible assets, revaluation, depreciation and amortisation
In making estimates of the depreciation / amortisation method, the management uses the method which
reflects the pattern in which economic benefits are expected to be consumed by the Bank. The method
applied is reviewed at each financial year end and if there is a change in the expected pattern of
consumption of the future economic benefits embodied in the assets, the method is changed to reflect the
change in pattern.
The Bank also revalues its properties on a periodic basis. Such revaluations are carried out by independent
valuer and involves estimates / assumptions and various market factors and conditions.
g) Employees' benefit plans
The liabilities for employees' benefits plans are determined using actuarial valuations. The actuarial
valuations involve assumptions about discount rates, expected rates of return on assets, future salary
increases, future inflation rates and future pension increases as disclosed in note 39. Due to the long term
nature of these plans, such estimates are subject to significant uncertainty.

h) Provision against contingencies
Provision against contingencies is determined based on the management judgement regarding the
probability of future outflows of resources embodying economic benefits to settle an obligation arising from
past events.
i) Lease liability against right of use assets
The Bank applies judgement to determine the lease term for some lease contracts in which it is a lessee
that include renewal options. The assessment of whether the Bank is reasonably certain to exercise such
options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use
assets recognized.
Moreover, management exercises judgement in establishing the discount rate for new leases, utilizing the
incremental borrowing rate as a benchmark.
6. CLOSURE OF FOREIGN SUBSIDIARIES AND OPERATIONS
In line with SBP Governance Framework 2018, the Board of Directors (BoD) in its 302nd meeting held on
January 20 & 21, 2020 has accorded the approval of International Strategy. As per approved Strategy, the BoD
allowed closure of few locations which have already been closed in prior years except Azerbaijan (Baku),
Kyrgyzstan (Bishkek) and Kazakhstan (Almaty) are still in the process of closure. The Board of Directors in its
316th meeting held on January 06 & 11, 2021 has accorded its approval to scale down Bangladesh operations.
SBP also directed to close bank’s operations in Paris Branch. On the basis of these directives, the BoD in its
327th meeting held on January 17, 2022 accorded their approval.
Closure process at Central Asian locations have been delayed due to non-settlement of NPLs portfolio.
Operations at the following locations are under the process of closure. Tentative closure dates are also
mentioned there against.
S.No Name of International Locations Tentative Date of Closure
1 CJSC Subsidiary Bank of NBP in Almaty, Kazakhstan 31.03.2024
2 Bishkek Branch, Kyrgyzstan 31.03.2024
3 Baku Branch, Azerbaijan 31.03.2024
4 Paris Branch, France 31.03.2024

CJSC Subsidiary
Bank of NBP in Baku Bishkek Paris
Total
Particulars Almaty (Azerbaijan) (Kyrgyzstan) (France)
(Kazakhstan)
(Subsidiary) ------------------- (Branches) ---------------------
----------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------------------------------
Cost of investment - net of impairment 1,003,778 - - - 1,003,778
Total Assets - 1,461,215 2,873,265 1,560,155 5,894,635
Total Liabilities - 51,793 18,665 123,477 193,935
Profit / (Loss) for the year - (15,134) 234,426 (642,483) (423,191)

2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
7. CASH AND BALANCES WITH TREASURY BANKS
In hand:
Local currency 62,369,227 52,704,335
Foreign currencies 9,651,086 7,192,805
72,020,313 59,897,140
With State Bank of Pakistan in:
Local currency current accounts 7.1 125,791,892 106,909,308
Foreign currency current accounts 7.2 21,661,443 15,661,453
Foreign currency deposit accounts 7.2 43,265,618 15,623,732
Foreign currency collection accounts 1,498,122 1,135,059
192,217,075 139,329,552
With other central banks in:
30,127,630 30,357,295
Prize bonds 627,552 326,962
294,992,570 229,910,949
7.1 This includes statutory liquidity reserves maintained with the SBP under Section 22 of the Banking Companies
Ordinance, 1962.
7.2 These represent mandatory reserves maintained in respect of foreign currency deposits under FE-25 scheme,
as prescribed by the SBP.
7.3 These balances pertain to the foreign branches and are held with central banks of respective countries. These
include balances to meet the statutory and regulatory requirements in respect of liquidity and capital
requirements of respective countries. The deposit accounts carry interest at the rate of 0% to 5.5% per annum
(2022: 0% to 4.5% per annum).
2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
8. BALANCES WITH OTHER BANKS
In Pakistan:
In deposit accounts 8.1 15,285 13,766
15,285 13,766
Outside Pakistan:
In current accounts 33,508,579 12,391,006
In deposit accounts 8.2 8,801,187 6,189,028
42,309,766 18,580,034
42,325,051 18,593,800

8.1 These include various deposits with banks and carry interest at the rates ranging from 6.00% to 12.70% per
annum (2022: 3.5% to 9.5% per annum).
8.2 These include various deposits with correspondent banks outside Pakistan and carry interest at the rates
ranging from 1.50% to 7.10% per annum (2022: 0% to 4% per annum).
2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
9. LENDINGS TO FINANCIAL INSTITUTIONS
Call / clean money lendings 9.1 9,723 9,723

Repurchase agreement lendings (Reverse repo) 9.2 & 9.6 192,420,714 31,262,744
Letters of placement 9.3 174,150 174,150
9.4 192,604,587 31,446,617
Less: provision held against lendings to financial institutions 9.5 & 9.7 (174,150) (174,150)
Lendings to financial institutions - net of provision 192,430,437 31,272,467
9.1 This includes zero rate lending to a financial institution amounting to Rs. 9.7 million (2022: Rs. 9.7 million) which
is guaranteed by the SBP.
9.2 These carry mark-up at rates ranging from 21.00% to 22.95% per annum (2022: 16% to 16.5% per annum) with
maturities ranging from January 2, 2024 to January 5, 2024.
9.3 These are overdue placements and full provision has been made against these placements as at December 31,
2023.
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
9.4 Particulars of lending
In local currency 192,604,587 31,446,617

In foreign currencies - -
192,604,587 31,446,617
9.5 Movement in provision held against lendings is as follows:
Opening balance 174,150 174,150

Reversal for the year - -
Closing balance 174,150 174,150

9.6 Securities held as collateral against lendings to financial institutions
2023 2022
Further
Held by Held by Further given
given as Total Total
Bank Bank as collateral
collateral
---------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------------------------------------
Market Treasury Bills 9,485,867 - 9,485,867 18,699,589 - 18,699,589

Pakistan Investment Bonds 182,934,847 - 182,934,847 12,563,155 - 12,563,155
Total 192,420,714 - 192,420,714 31,262,744 - 31,262,744
- -
9.6.1 Market value of the securities under repurchase agreement lendings amounts to Rs. 192,518 million (2022: Rs.
31,027 million).
9.7 Category of classification

2023 2022
Classified Provision Classified Provision
lending held lending held
Domestic
-------------------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------
Loss 174,150 174,150 174,150 174,150

Total 174,150 174,150 174,150 174,150

10 INVESTMENTS
164
10.1 Investments by type: 2023 2022
Cost / Provision
Surplus / Carrying Cost / Provision for Surplus / Carrying
amortised for
(deficit) value amortised cost diminution (deficit) value
cost diminution
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees
Note in '000)-------------------------------------------------------------------------------------------------------------
Held-for-trading securities
Federal Government Securities
Market treasury bills 23,341,720 - 7,673 23,349,393 22,269,343 - (2,665) 22,266,678
Pakistan investment bonds 14,665,019 - (37,878) 14,627,141 61,942,656 - (1,031,197) 60,911,459
Ijarah Sukuk Bonds 5,038,531 - (3,521) 5,035,010 - - - -
Ordinary Shares
Listed Companies 79,317 - (1,213) 78,104 424,708 - (20,939) 403,769

43,124,587 - (34,939) 43,089,648 84,636,707 - (1,054,801) 83,581,906
Available-for-sale securities

Pakistan investment bonds 2,926,410,213 - (25,322,781) 2,901,087,432 1,972,276,787 - (27,509,276) 1,944,767,511
Market treasury bills 954,585,428 - 2,228,157 956,813,585 828,851,708 - (2,354,400) 826,497,308
Ijarah sukuks 30,424,484 - (330,520) 30,093,964 20,518,238 - (339,589) 20,178,649
Foreign currency debt securities 40,907,401 - (10,174,093) 30,733,308 33,045,353 - (18,622,514) 14,422,839
Ordinary Shares
Listed Companies 10.12 / 10.13 51,691,556 (11,638,688) 22,284,263 62,337,131 41,601,347 (10,159,936) 4,813,864 36,255,275
Unlisted Companies 2,107,198 (448,951) - 1,658,247 1,882,198 (427,951) - 1,454,247
Preference Shares
Listed 1,448,472 (566,446) 161,771 1,043,797 1,448,472 (566,446) 209,451 1,091,477
Unlisted 558,284 (558,284) - - 558,284 (279,284) - 279,000
Non-Government Debt Securities
NATIONAL BANK
Term Finance Certificates /
Musharaka / Bonds / Debentures and
Sukuk Bonds 53,137,456 (5,857,566) 355,100 47,634,990 52,125,171 (5,990,161) 1,047,326 47,182,336
PAKISTAN
2023 2022
Cost / Provision
amortised for
cost diminution
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees
Note in '000)-------------------------------------------------------------------------------------------------------------
Mutual Fund Units 2,219,646 (41,167) 1,726,825 3,905,304 2,219,646 (41,167) 941,952 3,120,431
Foreign Securities
Equity securities - Listed 10.6 463,294 - 42,171,551 42,634,845 463,294 - 34,380,951 34,844,245
Foreign Government debt securities 3,385,022 - 8,528 3,393,550 1,914,312 - (30,359) 1,883,953
ANNUAL REPORT 2023

4,067,338,454 (19,111,102) 33,108,801 4,081,336,153 2,956,904,810 (17,464,945) (7,462,594) 2,931,977,271
Held-to-maturity securities 10.5.1

Pakistan investment bonds 213,116,482 - - 213,116,482 375,236,903 - - 375,236,903
Market treasury bills - - - - 29,376,461 - - 29,376,461
Ijarah sukuks 14,087,500 - - 14,087,500 13,130,709 - - 13,130,709
Foreign currency debt securities 4,288,988 - - 4,288,988 2,992,408 - - 2,992,408

Term Finance Certificates / -
Sukuk Bonds 404,585 (404,585) - - 404,585 (404,585) - -
Foreign Securities
Foreign Government debt securities 41,295,981 - - 41,295,981 36,096,507 - - 36,096,507
Non-Government Debt Securities 1,083 - - 1,083 871 - - 871
273,194,619 (404,585) - 272,790,034 457,238,444 (404,585) - 456,833,859
Associates 10.8/10.14 4,926,048 (2,755,128) - 2,170,920 4,926,048 (3,942,498) - 983,550

Joint Venture 10.11 2,362,433 - - 2,362,433 2,362,433 - - 2,362,433
Subsidiaries 10.2.4 2,952,967 (1,338,112) - 1,614,855 2,952,967 (1,338,112) - 1,614,855
Total investments 4,393,899,108 (23,608,927) 33,073,862 4,403,364,043 3,509,021,409 (23,150,140) (8,517,395) 3,477,353,874
165
2023 2022
166
10.2 Investments by segments:
Cost / Provision
amortised for
cost diminution
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees
Note in '000)--------------------------------------------------------------------------------------------------------------
Market Treasury Bills 977,927,148 - 2,235,830 980,162,978 880,497,512 - (2,357,065) 878,140,447
Pakistan Investment Bonds 3,154,191,714 - (25,360,659) 3,128,831,055 2,409,456,346 - (28,540,473) 2,380,915,873
Ijarah Sukuks 49,550,515 - (334,041) 49,216,474 33,648,947 - (339,589) 33,309,358
4,226,865,766 - (33,632,963) 4,193,232,803 3,359,640,566 - (49,859,641) 3,309,780,925
Shares
Listed Companies 10.12 / 10.13 51,770,873 (11,638,688) 22,283,050 62,415,235 42,026,055 (10,159,936) 4,792,925 36,659,044
53,878,071 (12,087,639) 22,283,050 64,073,482 43,908,253 (10,587,887) 4,792,925 38,113,291

Non Government Debt Securities
Listed 14,263,085 (127,305) 301,710 14,437,490 14,940,897 (130,026) 335,083 15,145,954
Unlisted 39,278,956 (6,134,846) 53,390 33,197,500 37,588,859 (6,264,720) 712,243 32,036,382
53,542,041 (6,262,151) 355,100 47,634,990 52,529,756 (6,394,746) 1,047,326 47,182,336
Foreign Securities
45,145,380 - 42,180,079 87,325,459 38,474,984 - 34,350,592 72,825,576
Preference shares
Listed Companies 1,448,472 (566,446) 161,771 1,043,797 1,448,472 (566,446) 209,451 1,091,477
Unlisted Companies 558,284 (558,284) - - 558,284 (279,284) - 279,000
Associates 10.9
- Listed
NATIONAL BANK
First Credit and Investment Bank Limited 10.14 157,431 (30,428) - 127,003 157,431 (47,429) - 110,002
Land Mark Spinning Mills Limited 39,710 (39,710) - - 39,710 (39,710) - -
S.G. Allied Business Limited 218,535 (218,535) - - 218,535 (218,535) - -
Nina Industries Limited 49,060 (49,060) - - 49,060 (49,060) - -
NBP Stock Fund 600,000 - - 600,000 600,000 (191,856) - 408,144
Agritech Limited 10.7 3,665,605 (2,221,688) - 1,443,917 3,665,605 (3,200,201) - 465,404
PAKISTAN
10.8 4,730,341 (2,559,421) - 2,170,920 4,730,341 (3,746,791) - 983,550

2023 2022
Cost / Provision
amortised for
cost diminution
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees
Note in '000)--------------------------------------------------------------------------------------------------------------
- Unlisted
Pakistan Emerging Venture Limited 50,563 (50,563) - - 50,563 (50,563) - -
National Fructose Company Limited 6,500 (6,500) - - 6,500 (6,500) - -
Dadabhoy Energy Supply Company Limited 32,105 (32,105) - - 32,105 (32,105) - -
Pakistan Mercantile Exchange Limited 106,539 (106,539) - - 106,539 (106,539) - -
ANNUAL REPORT 2023

10.10 195,707 (195,707) - - 195,707 (195,707) - -
4,926,048 (2,755,128) - 2,170,920 4,926,048 (3,942,498) - 983,550
Joint Venture -
United National Bank Limited 10.11 2,362,433 - - 2,362,433 2,362,433 - - 2,362,433
Subsidiaries
CJSC Subsidiary Bank of NBP in Kazakhstan 2,185,644 (1,181,867) - 1,003,777 2,185,644 (1,181,867) - 1,003,777
NBP Exchange Company Limited 300,000 - - 300,000 300,000 - - 300,000
NBP Modaraba Management Company Limited 105,000 (105,000) - - 105,000 (105,000) - -
Taurus Securities Limited 24,725 - - 24,725 24,725 - - 24,725
Cast-N-Link Products Limited 1,245 (1,245) - - 1,245 (1,245) - -
NBP Funds Management Limited 336,353 (50,000) - 286,353 336,353 (50,000) - 286,353
2,952,967 (1,338,112) - 1,614,855 2,952,967 (1,338,112) - 1,614,855
Total investments 4,393,899,108 (23,608,927) 33,073,862 4,403,364,043 3,509,021,409 (23,150,140) (8,517,395) 3,477,353,874
10.2.1 Investments given as collateral 2023 2022

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------
The book value of investments given as collateral against borrowings is as follows:
Pakistan Investment Bonds 2,047,337,847 1,136,497,472
Market Treasury Bills 17,134,259 689,709,291
2,064,472,106 1,826,206,763
167
10.2.2 Associates
168
Based on the
Percentage Total
Number of Country of financial Profit / (loss)
of Assets Liabilities Revenue comprehensive
shares incorporation statements after taxation
holding income / (loss)
as at
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------------------------------------
Listed
First Credit and Investment 20,000,000 30.77 Pakistan June 30, 2023 1,851,310 1,127,397 279,322 12,994 8,750
Bank Limited
National Fibres Limited* 17,030,231 20.19 Pakistan N/A - - - - -
Land Mark Spinning Mills Limited 3,970,859 32.79 Pakistan June 30, 2023 131,498 254,116 - (12,327) (12,327)
SG Allied Businesses Limited 3,754,900 25.03 Pakistan June 30, 2022 1,233,803 552,420 14,247 (10,794) (9,407)
Nina Industries Limited 4,906,000 20.27 Pakistan N/A - - - - -
Agritech Limited 106,014,565 27.01 Pakistan December 31, 2022 81,470,499 69,486,319 17,296,183 (2,953,326) 8,228,387
NBP Stock Fund 31,347,444 4.236 Pakistan June 30, 2023 10,286,565 120,651 240,054 (333,261) (333,261)
Unlisted
Pakistan Emerging Venture Limited 12,500,000 33.33 Pakistan June 30, 2022 478 404 56 (385) (385)
National Fructose Company Limited 1,300,000 39.5 Pakistan N/A - - - - -
Venture Capital Fund Management* 33,333 33.33 Pakistan N/A - - - - -
Kamal Enterprises Limited* 11,000 20.37 Pakistan N/A - - - - -
Mehran Industries Limited* 37,500 32.05 Pakistan N/A - - - - -
Tharparkar Sugar Mills Limited* 2,500,000 21.52 Pakistan N/A - - - - -
Youth Investment Promotion Society* 644,508 25 Pakistan N/A - - - - -
Dadabhoy Energy Supply 9,900,000 23.11 Pakistan N/A - - - - -
Company Limited
K-Agricole Limited* 5,000 20 Pakistan N/A - - - - -
New Pak Limited* 200,000 20 Pakistan N/A - - - - -
Pakistan Mercantile Exchange Limited 10,653,860 33.98 Pakistan June 30, 2023 4,769,315 4,463,439 676,898 199,485 199,485
Prudential Fund Management Limited* 150,000 20 Pakistan N/A - - - - -
*Nil figure represent shares which have been acquired under different arrangements without any cost
10.2.3 Joint Venture
NATIONAL BANK
United National Bank Limited 20,250,000 45 United December 31, 2022 219,715,668 199,381,061 6,133,623 1,148,072 (1,110,841)
Kingdom
PAKISTAN
Based on the
Percentage Total
Number of Country of financial Profit / (loss)
of Assets Liabilities Revenue comprehensive
shares incorporation statements after taxation
holding income / (loss)
as at
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees
10.2.4 Subsidiaries in '000)---------------------------------------------------------------------------------
CJSC Subsidiary Bank of 8,650 100 Kazakhstan December 31, 2022 2,169,879 9,777 189,054 115,896 345,555
NBP in Kazakhstan
NBP Exchange Company Limited 99,999,999 100 Pakistan December 31, 2022 2,042,908 239,785 873,450 439,481 439,481
NBP Modaraba Management 10,500,000 100 Pakistan December 31, 2022 110,915 101,277 12,121 3,452 3,452
Company Limited
ANNUAL REPORT 2023

Taurus Securities Limited 7,875,002 58.32 Pakistan December 31, 2022 1,302,004 1,001,412 124,947 (8,294) (13,206)
Cast-N-Link Products Limited 1,245,000 76.51 Pakistan N/A* - - - - -
NBP Fund Management Limited 13,499,996 54 Pakistan June 30, 2023 3,238,750 1,933,438 1,867,827 408,333 407,586
N/A: Not available
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees
10.3 Provision for diminution in value of investments in '000)---------------------------------------------------
Opening balance 23,150,140 18,486,879
Charge / (reversals)
Charge for the year 2,157,756 4,662,589
Reversals for the year (1,319,964) (670,409)
Reversal on disposals (379,005) (179,661)
458,787 3,812,519
Transfers - net - 850,742
Closing balance 23,608,927 23,150,140
10.3.1 Particulars of provision against debt securities
Category of classification 2023 2022

NPI Provision NPI Provision
------------------------------------- (Rupees in '000) ------------------------------------
Domestic
Loss 6,262,151 6,262,151 6,525,731 6,394,746

Total 6,262,151 6,262,151 6,525,731 6,394,746
169
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
10.4 Quality of available for sale securities
Details regarding quality of available for sale securities (AFS) are as follows:
Federal government securities - government guaranteed
Market treasury bills 954,585,428 828,851,708

Pakistan investment bonds 2,926,410,213 1,972,276,787
Ijarah sukuks 30,424,484 20,518,238
Foreign currency debt securities 40,907,401 33,045,353
Cost 3,952,327,526 2,854,692,086
Shares
Listed companies sector - wise
Automobile Assembler 2,442,432 1,775,528

Automobile Parts and Accessories 1,067,760 1,115,685
Cable and Electrical Goods 418,994 384,069
Cement 3,672,159 4,249,593
Chemical 711,682 627,704
Commercial Banks 9,982,145 6,575,004
Engineering 2,149,015 1,422,047
Fertilizer 3,518,165 2,985,056
Food and Personal Care 1,606,665 1,208,649
Glass and Ceramics 64,314 64,314
Insurance 1,642,671 1,642,671
Investment Banks / Investment companies / Securities companies 508,688 508,688
Leasing Companies 12,594 12,594
Leather and Tanneries 45,731 214,868
Oil and Gas Exploration Companies 2,952,721 2,686,730
Oil and Gas Marketing Companies 5,707,820 5,719,991
Paper and Board 670,751 718,972
Pharmaceuticals 2,708,507 1,000,104
Power Generation and Distribution 2,893,502 3,046,397
Real Estate Investment Trust 304,025 305,972
Refinery 756,817 756,715
Sugar and Allied Industries 259,483 259,483
Synthetic and Rayon 15,499 15,499
Technology and Communication 2,408,109 1,040,079
Textile Composite 2,736,219 1,918,908
Textile Spinning 655,195 655,195
Transport 245,937 236,225
Tobacco 695,241 -
Miscellaneous 838,715 454,607
Cost 51,691,556 41,601,347

-

2023 2022
Breakup Breakup
Cost Cost
Unlisted companies entity - wise value value
------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------
Digri Sugar Mills Limited 4,063 135,585 4,063 135,585

Gelcaps Pakistan Limited 4,665 2,961 4,665 2,961
Pakistan Agriculture Storage Service Corporation 5,500 3,551,928 5,500 3,551,928
Al Ameen Textile 328 N/A 328 N/A
Professional Management Modaraba (Formerly Al Zamin
Modarba Management (Private) Limited) 1,000 2,134 1,000 2,134
AMZ Venture Limited Class A 123 N/A 123 N/A
Arabian Sea Country Club 6,500 (7,664) 6,500 (7,664)
Atlas Power Limited 375,000 1,286,500 375,000 1,282,850
Attock Textile Mills Limited 200 N/A 200 N/A
Pakistan Mortgage Refinance Company Limited 600,000 2,156,685 600,000 1,510,050
F.T.C. Management Company Private Limited 250 43,779 250 42,759
Fauji Akbar Portia Marines Terminal Limited 321,076 609,635 321,076 593,184
Fauji Oil Terminals and Distribution Limited 10,886 183,168 10,886 130,687
First Women Bank Limited 21,100 46,319 21,100 79,733
Fortune Securities Limited 5,000 6,702 5,000 8,804
Frontier Textile Mills Limited 500 272 500 272
Gulistan Power Generation Limited 2,200 8,096 2,200 8,096
Hazara Woolen Mills Limited 200 N/A 200 N/A
Industrial Development Bank of Pakistan 107 N/A 107 N/A
Inter Asia Leasing Company Limited 500 N/A 500 N/A
ISE Towers REIT Management Company Limited 30,346 62,264 30,346 52,988
Junaid Cotton Mills Limited 327 N/A 327 N/A
Kaisar Arts and Krafts Limited 8,395 N/A 8,395 N/A
Kaytex Mills Limited 3,778 N/A 3,778 N/A
Khushhali Microfinance Bank Limited 225,000 178,700 - -
Mian Mohammad Sugar Mills Limited 15 N/A 15 N/A
Muslim Ghee Mills Limited 1,810 N/A 1,810 N/A
Myfip Video Industries Limited 5,373 N/A 5,373 N/A
National Asset Leasing Corporation Limited 14 N/A 14 N/A
National Construction Limited 250 597 250 597
National Institution of Facilitation Technology 1,526 55,574 1,526 64,687
National Investment Trust Limited 100 700,276 100 910,231
National Woolen Mills Limited 183 N/A 183 N/A
Natover Lease and Refinance 2,602 N/A 2,602 N/A
Nowshehra Engineering Works Limited 41 N/A 41 N/A
Pakistan Export Finance Guarantee Agency Limited 11,529 1,152 11,529 1,152
Pakistan Paper Corporation Limited 373 N/A 373 N/A
Pakistan Telephone Cables 143 N/A 143 N/A
Pakistan Textile City 100,000 12,410 100,000 12,410
Pakistan Tourism Development Corporation 100 138 100 138
People Steel Mills Limited 3,276 N/A 3,276 N/A

2023 2022
Cost Breakup Cost Breakup

value value
-----------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------
Qadri Textile Mills Limited 500 N/A 500 N/A

Rehman Cotton Mills Limited 16,955 107,895 16,955 107,895
Refrigerator Manufacturing Company Limited 4,589 N/A 4,589 N/A
Rousch Power Pakistan Limited 132,888 1,430,921 132,888 1,089,730
Ruby Rice and General Mills Limited 750 N/A 750 N/A
Sahrish Textile Mills 21 N/A 21 N/A
Shoaib Capital 272 544 272 544
SME Bank Limited 26,950 (139,326) 26,950 (318)
South Asia Regional Fund 287 N/A 287 N/A
Star Salica Industries Limited 267 N/A 267 N/A
Syed Match Industries 2 N/A 2 N/A
Union Insurance Company of Pakistan 4 N/A 4 N/A
Unity Modaraba 28 N/A 28 N/A
Zafar Textiles Mills Limited 257 N/A 257 N/A
Zulsham Engineering Works Limited 330 N/A 330 N/A
Information System Associates Limited 1,719 N/A 1,719 N/A
1 Link (Pvt) Limited 50,000 428,290 50,000 428,290
Pakistan Corporate Restructuring Company Limited 96,000 N/A 96,000 N/A
Pakvitae (Private) Limited 21,000 - 21,000 N/A
2,107,198 1,882,198
N/A: Not available -
2023 2022
--------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
Listed
- AA+, AA, AA- 7,510,782 8,010,870
- A+, A, A- 625,000 800,000
- Unrated 6,127,303 6,130,027
Cost 14,263,085 14,940,897
Unlisted
- AAA , AAA+ 18,395,305 18,927,154
- AA+, AA, AA- 4,693,580 5,151,626
- A+, A, A- 1,838,372 2,147,091
- BBB+, BBB, BBB- 299,760 299,760
- Unrated 13,647,354 10,658,643
Cost 38,874,371 37,184,274

Foreign Securities
2023 2022
Foreign Government Debt Securities Cost Rating Cost Rating
(Rupees in '000) (Rupees in '000)
USA 3,385,022 AA+ 1,914,312 AA+
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
10.5 Particulars relating to Held to Maturity securities are as follows:
Federal Government Securities - Government guaranteed

Market Treasury Bills - 29,376,461
Pakistan Investment Bonds 213,116,482 375,236,903
Ijarah sukuks 14,087,500 13,130,709
Cost 231,492,970 420,736,481
Unlisted
- Unrated 404,585 404,585
Cost 404,585 404,585
Foreign Securities
2023 2022
Cost Rating Cost Rating
Foreign Government Debt Securities
Azerbaijan 1,028,843 BB+ 826,514 BB+
Bangladesh 35,789,601 BB- 31,087,653 BB-
Kyrgyzstan 274,586 B3 814,349 B3
Kingdom of Saudi Arabia 4,202,951 A+ 3,367,991 A+
41,295,981 36,096,507
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
Listed
- Unrated - Cost 1,083 871
10.5.1 The market value of securities classified as held-to-maturity as at December 31, 2023 amounted to Rs. 251,842
million (2022: Rs. 435,745 million).

10.6 Investment in shares of a bank incorporated outside Pakistan - Bank Al-Jazira

The Bank holds 30,333,333 (2022: 30,333,333) shares in Bank Al-Jazira (BAJ) incorporated in the Kingdom of
Saudi Arabia, representing 3.7% (2022: 3.7%) holding in total equity of BAJ. The investment has been marked
to market using closing price as quoted on the Saudi Stock Exchange in accordance with SBP concurrence vide
letter No. BSD/SU-13/331/685/2006 dated February 17, 2006. BAJ’s Viability Rating is bb+ with short term and
long term Issuer Default Rating (IDR) at F2 and A- respectively by Fitch Rating Agency.
10.7 Out of 106,014,565 shares, 94,273,510 shares of Agritech Limited were acquired from Azgard Nine Limited as
part of multiple agreements including the Master Restructuring Agreement (MRA). These shares were acquired
at an agreed price of Rs. 35 per share.
10.8 Aggregate market value of investment in associates (quoted) on the basis of quoted prices amounts to Rs.
2,979 million (2022: Rs. 1,742 million).
10.9 Associates with zero carrying amount represent the investments acquired from former National Development
Finance Corporation (NDFC) which have negative equity or whose operations were closed at the time of
amalgamation.
10.10 The details of break-up value based on latest available financial statements of unlisted investments in
associates are as follows:
Year / Period Break-up value
ended Rupees in '000
Pakistan Emerging Venture Limited June 30, 2022 25

Mehran Industries Limited June 30, 2001 5,681
Tharparkar Sugar Mills Limited September 30, 2001 (83,140)
Prudential Fund Management June 30, 2007 (2,482)
Dadabhoy Energy Supply Company Limited June 30, 2007 103,952
Pakistan Mercantile Exchange Limited June 30, 2023 103,931
2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
10.11 Investments in joint venture
United National Bank Limited (UNBL)

(Incorporated in United Kingdom) 10.11.1 2,362,433 2,362,433
10.11.1 Under a joint venture agreement, the Bank holds 20.25 million ordinary shares (45%) and United Bank Limited
(UBL) holds 23.25 million ordinary shares (55%) in UNBL. In addition to ordinary shares, four preference shares
categories as "A", "B", "C" and "D" have been issued and allotted. The "B" and "D" category shares are held by
the Bank and category "A" and "C" are held by UBL. Dividends payable on "A" and "B" shares are related to the
ability of the venture to utilize tax losses that have been surrendered to it on transfer of business from the Bank
or UBL as appropriate. Dividends payable on "C" and "D" shares are related to loans transferred to the venture
by the Bank or UBL that have been written-off or provided for at the point of transfer and the ability of the
venture to realize in excess of such loan value.
10.12 The investments also include shares acquired under tri-partite consent agreement dated June 29, 2011. These
strategic investments comprise of the shares of Pakistan State Oil (38,055,247 shares), shares of Sui Northern
Gas Pipeline Limited (18,805,318 shares) and shares of Pakistan Engineering Company (135,242 shares). The
cost of these shares amounts to Rs. 4,603 million and market value as at December 31, 2023 amounts to Rs.
8,186 million. These shares have been frozen by the Government of Pakistan for sale in the equity market due
to their proposed privatization and can not be sold without concurrence of privatization commission.

10.13 The investments also include 31,665,000 shares of Pakistan Reinsurance Company Limited. The cost of these
shares amounts to Rs. 220 million and market value as at December 31, 2023 amounts to Rs. 244 million.
These shares can not be sold without concurrence of privatization commission.
10.14 The investments also include 20,000,000 shares of First Credit and Investment Bank. The cost of these shares
amounts to Rs. 157 million and market value as at December 31, 2023 amounts to Rs. 127 million. These
shares can not be disinvested without prior consultation with Ministry of Finance.
11. ADVANCES
Performing Non Performing Total
2023 2022 2023 2022 2023 2022
Note
------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------
Loans, cash credits, running finances, etc. 1,325,183,535 1,168,258,464 205,630,719 190,545,941 1,530,814,254 1,358,804,405
Islamic financing and related assets 73,125,444 46,381,315 1,550,351 654,980 74,675,795 47,036,295
Net investment in finance lease 11.1 16,207 35,384 - - 16,207 35,384
Bills discounted and purchased 12,534,791 18,598,616 13,644,646 14,106,504 26,179,437 32,705,120
Advances - gross 11.2 1,410,859,977 1,233,273,779 220,825,716 205,307,425 1,631,685,693 1,438,581,204
Provision against advances

- Specific - - 203,570,752 190,710,861 203,570,752 190,710,861
- General 30,038,121 17,348,539 - - 30,038,121 17,348,539
11.4 30,038,121 17,348,539 203,570,752 190,710,861 233,608,873 208,059,400
Advances - net of provision 1,380,821,856 1,215,925,240 17,254,964 14,596,564 1,398,076,820 1,230,521,804
-
11.1 Net investment in finance lease
2023 2022
Later than Later than

Not Not
one and Over five one and Over five
later than Total later than Total
upto five years upto five years
one year one year
years years
------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------
Lease rentals receivable 2,304 - - 2,304 1,312 - - 1,312

Residual value 14,064 - - 14,064 34,237 - - 34,237
Minimum lease payments 16,368 - - 16,368 35,549 - - 35,549
Less: Financial charges
for future periods 161 - - 161 165 - - 165
Present value of minimum
lease payments 16,207 - - 16,207 35,384 - - 35,384
The leases executed are for a term of 1 to 5 years. Security deposit is generally obtained upto 10% of the cost
of leased assets at the time of disbursement. The Bank requires the lessee to insure the leased assets in favor
of the Bank. Additional surcharge is charged on delayed rentals. The average return implicit ranges from
10.19% to 14.85% (2022: 10.19% to 14.85%) per annum.

2023 2022
------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------
11.2 Particulars of advances (Gross)
In local currency 1,334,480,999 1,264,352,705

In foreign currencies 297,204,695 174,228,499
1,631,685,694 1,438,581,204
11.3 Advances include Rs. 220,826 million (2022: 205,307 million) which have been placed under non-performing
status as detailed below:
2023 2022
Non Non
Category of Classification Performing Provision Performing Provision
Loans Loans
---------------------------------------------------------------------------------------------------------------------------(Rupees
Domestic in '000)-------------------------------------------------------
Other Assets Especially Mentioned 2,156,275 60,035 1,780,995 73,114

Substandard 6,421,005 1,560,252 5,888,114 1,439,916
Doubtful 11,443,314 5,980,028 8,834,066 4,645,364
Loss 136,013,278 133,633,669 135,077,580 132,802,811
156,033,872 141,233,984 151,580,755 138,961,205
Overseas
Not past due but impaired

Overdue by:
Upto 90 days - - - -
91 to 180 days - - - -
181 to 365 days 400,925 200,463 331,133 165,566
365 days 64,390,919 62,136,305 53,395,537 51,584,090
64,791,844 62,336,768 53,726,670 51,749,656
Total 220,825,716 203,570,752 205,307,425 190,710,861
11.4 Particulars of provision against advances

2023 2022
Specific General Total Specific General Total
Note
-----------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------
Opening balance 190,710,861 17,348,539 208,059,400 179,311,722 12,472,591 191,784,313

Exchange adjustments 12,156,348 153,606 12,309,954 8,339,198 107,952 8,447,150
Charge for the year 8,127,265 14,854,298 22,981,563 5,227,343 9,553,101 14,780,444
Reversals (8,063,994) (1,530,934) (9,594,928) (4,963,631) (1,757,105) (6,720,736)
63,271 13,323,364 13,386,635 263,712 7,795,996 8,059,708
Amounts written off 11.5.2 (102,509) - (102,509) (175,513) - (175,513)
Amounts charged off-
agriculture financing 11.4.1.3 (44,607) - (44,607) (56,258) - (56,258)
Transfer from general to
specific provision 787,388 (787,388) - 3,028,000 (3,028,000) -
Closing balance 203,570,752 30,038,121 233,608,873 190,710,861 17,348,539 208,059,400

11.4.1 Particulars of provision against advances
2023 2022
---------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------------------------------------------
In local currency 141,233,984 29,767,923 171,001,907 138,961,205 16,741,242 155,702,447

In foreign currencies 62,336,768 270,198 62,606,966 51,749,656 607,297 52,356,953
203,570,752 30,038,121 233,608,873 190,710,861 17,348,539 208,059,400
11.4.1.1 General provision includes provision amounting to Rs. 4,987 million (2022: Rs. 5,211 million) against consumer
& SME finance portfolio as required by the Prudential Regulations issued by the SBP. General provision also
includes Rs. 270 million (2022: Rs. 607 million) pertaining to overseas advances to meet the requirements of
regulatory authorities of the respective countries in which the Bank operates.
Keeping in view the portfolio assessment and the estimated impact of adoption of IFRS 9, the Bank has also
maintained a general provision of Rs. 24,781 million (2022: Rs. 11,530 million) against underperforming portfolio
on prudent basis, in view of prevailing economic conditions. This general provision is in addition to the
requirements of Prudential Regulations.
11.4.1.2 The SBP has allowed specific relaxation to the Bank for non-classification of overdue loans of certain Public
Sector Entities (PSEs) which are guaranteed by Government of Pakistan as non-performing loans up till
December 31, 2023. No provision is required against these loans; however, mark-up is being suspended as
required by the Prudential Regulations.
11.4.1.3 These represent non-performing advances for agriculture finance which have been classified as loss and fully
provided for more than 3 years. These non-performing advances have been charged off by extinguishing them
against the provision held in accordance with Prudential Regulations for Agriculture Financing issued by the
SBP. This charge off does not, in any way, prejudice the Bank's right of recovery from these customers.
2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
11.5 Particulars of write-offs
11.5.1 Against provisions 11.5.2 102,509 169,175
11.5.2 Write-offs of Rs. 500,000 and above

- Domestic 41,087 128,797
- Overseas 8,219 -
11.6 49,306 128,797
Write-offs of below Rs. 500,000 53,203 40,378
Total Write offs 102,509 169,175
Total Reversals - 6,338
11.6 Details of loan write-off of Rs. 500,000/- and above
In terms of sub-section (3) of Section 33A of the Banking Companies Ordinance,1962, the statement in respect
of written-off loans or any other financial relief of rupees five hundred thousand or above allowed to a person(s)
during the year ended December 31, 2023 is given in Annexure-I to the unconsolidated financial statements
(except where such disclosure is restricted by overseas regulatory authorities).
11.7 Information related to islamic financing and related assets is given in note 2 of Annexure II and is an integral
part of these unconsolidated financial statements.

2023 2022
178
Note
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------------------------
12. FIXED ASSETS
Capital work-in-progress 12.1 1,623,424 1,080,087
Property and equipment 12.2 55,350,993 56,025,755
56,974,417 57,105,842
12.1 Capital work-in-progress
Civil works 1,553,964 1,010,529
Equipment 10,727 10,825
Advances to suppliers and contractors 58,733 58,733
Software implementation in progress - -
1,623,424 1,080,087
12.2 Property and equipment

2023
Assets held
Computer
Building on Building on Electrical, under
Freehold Leasehold Furniture and

freehold leasehold office Vehicles finance Total
land land and fixture peripheral
land land equipment lease -
equipment
vehicles
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------------------------------------------------------------------------
At January 1, 2023
Cost / revalued amount 21,472,756 21,087,923 7,465,497 5,600,717 7,440,946 5,230,143 7,962,155 2,028,545 165,253 78,453,935
Accumulated depreciation - - (1,784,985) (1,424,821) (5,874,872) (4,885,776) (7,014,159) (1,278,315) (165,252) (22,428,180)
Net book value 21,472,756 21,087,923 5,680,512 4,175,896 1,566,074 344,367 947,996 750,230 1 56,025,755
Year ended December 2023

Opening net book value 21,472,756 21,087,923 5,680,512 4,175,896 1,566,074 344,367 947,996 750,230 1 56,025,755
Additions - - 65,247 97,784 727,024 467,203 502,393 287,290 - 2,146,941
Movement in surplus on assets revalued
- - - 17,842 - - - - - 17,842
Disposals - - - (178,130) (11,512) (6,860) (8,187) (49,592) - (254,281)
Depreciation charge (294,866) (201,572) (512,782) (579,394) (545,169) (322,740) (2,456,523)
Depreciation adjustment - disposal - - - 3,750 9,045 6,859 7,187 27,691 - 54,532
Exchange rate adjustments - - - 54,303 13,269 32,160 8,990 1,670 - 110,392
Other adjustments / transfers - - - - (293,665) - - - - (293,665)
Closing net book value 21,472,756 21,087,923 5,450,893 3,969,873 1,497,453 264,335 913,210 694,549 1 55,350,993
At December 31, 2023
NATIONAL BANK
Cost / revalued amount 21,472,756 21,087,923 7,530,744 5,592,516 7,876,062 5,722,646 8,465,351 2,267,913 165,253 80,181,164
Net book value 21,472,756 21,087,923 5,450,893 3,969,873 1,497,453 264,335 913,210 694,549 1 55,350,993
Rate of depreciation (percentage) 5% on 5% on 20% on 33.33% on 20% - 50% 20% on 20% on

Nil Nil
book value book value cost cost on cost cost cost
PAKISTAN
2022
Assets held
Computer
Building on Building on Electrical, under
Freehold Leasehold Furniture and
freehold leasehold office Vehicles finance Total
land land and fixture peripheral
land land equipment lease -
equipment
vehicles
At January 1, 2022
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------------------------------------------------------------------------
Cost / Revalued amount 20,370,445 19,465,743 6,524,947 5,131,378 6,820,804 4,979,128 7,596,952 1,963,459 165,253 73,018,109
Net book value 20,370,445 19,465,743 5,002,245 3,901,288 1,557,454 442,834 1,091,343 869,862 1 52,701,215

Opening net book value 20,370,445 19,465,743 5,002,245 3,901,288 1,557,454 442,834 1,091,343 869,862 1 52,701,215
Additions - - 192,827 333,935 635,155 258,220 311,633 235,796 - 1,967,566
ANNUAL REPORT 2023

Movement in surplus on assets revalued
1,110,306 1,622,180 791,946 167,353 - - - - - 3,691,785
Disposals - - - - (18,664) (7,205) (7,952) (173,354) - (207,175)
Depreciation charge - - (262,282) (194,731) (626,948) (356,687) (516,449) (309,890) - (2,266,987)
Depreciation adjustment - disposal - - - - 15,425 7,205 7,899 125,172 - 155,701

Exchange rate adjustments - - - (11,024) 3,651 - 3,611 2,644 - (1,118)
Other adjustments / transfers (7,995) - (44,223) (20,925) - - 57,911 - - (15,232)
Closing net book value 21,472,756 21,087,923 5,680,513 4,175,896 1,566,073 344,367 947,996 750,230 1 56,025,755
- -
Cost / Revalued amount 21,472,756 21,087,923 7,465,497 5,600,717 7,440,946 5,230,143 7,962,155 2,028,545 165,253 78,453,935
Net book value 21,472,756 21,087,923 5,680,512 4,175,896 1,566,074 344,367 947,996 750,230 1 56,025,755
Rate of depreciation (percentage) 5% on 5% on 20% on 33.33% on 20% - 50% 20% on 20% on

Nil Nil
book value book value cost cost on cost cost cost
12.2.1 Revaluation of Properties
The properties of the Bank have been revalued by the independent professional valuer as at December 31, 2022. The revaluation was carried out by an
independent professional valuer, RBS Associates (Private) Limited (PBA registered valuer) on the basis of professional assessment of present market values.
The total surplus against revaluation of fixed assets as at December 31, 2023, amounts to Rs. 47,396 million. Had there been no revaluation, the carrying amount
of the revalued assets at December 31, 2023, would have been as follows:
2023 2022
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------
Freehold land 1,132,637 1,132,637
Leasehold land 890,025 890,025
Building on freehold land 1,076,598 1,013,440
Building on leasehold land 2,006,052 1,909,929
5,105,312 4,946,031
12.2.2 Carrying amount of temporarily idle property of the Bank 5,583,785 5,319,961
12.2.3 The cost of fully depreciated assets still in use
Furniture and fixtures 2,232,841 2,123,087
Electrical and office equipment 3,640,626 3,260,800
Computer and peripheral equipment 3,390,782 3,157,918
179
Vehicles 1,417,915 1,316,496

10,682,164 9,858,301
12.3 Details of disposals of fixed assets to related parties
The particulars of disposal of fixed assets to related parties (Employees / Ex-Employees) are given below:
Gain /
Particulars of property and Original Book Sale Particulars of
(loss) on Mode of disposal Buyers name
equipment cost Value Proceed purchaser
disposal
------------------------(Rupees in '000)---------------------
Vehicles 1,824 152 365 213 As per Entitlement Employee Mr.Riaz Mahmood
Vehicles 1,824 334 365 31 As per Entitlement Employee Mr.Mobashir Nabi
Vehicles 1,824 152 365 213 As per Entitlement Employee Ms.Nadia Ahmer
Vehicles 2,029 203 203 - As per Entitlement Employee Mr.Jalil Ahmed Tariq
Vehicles 2,229 706 706 - As per Entitlement Ex-Employee Mr.Javed Haider
Vehicles 2,695 1,752 1,752 - As per Entitlement Ex-Employee Mr.Sohail Akhtar Arbab
Vehicles 2,623 1,792 1,792 - As per Entitlement Employee Mr.Saeed Ahmed Shah
Vehicles 8,908 5,048 5,048 - As per Entitlement Employee Mr.Rehmat Ali Hasnie
Vehicles 1,824 30 182 152 As per Entitlement Ex-Employee Mr.Naveed Sultan
Vehicles 2,623 1,749 1,749 - As per Entitlement Employee Mr. Manzoor Ahmed
Vehicles 2,675 1,516 1,516 - As per Entitlement Employee Mr.Muhammad Zaman Khan
Vehicles 2,380 793 793 - As per Entitlement Employee Mr.Abdul Majid Sheikh
Vehicles 2,723 1,452 1,452 - As per Entitlement Employee Mr.Noor Ul Islam
Vehicles 2,525 800 800 - As per Entitlement Employee Mr.Abdul Jamal Tariq
Vehicles 2,723 1,498 1,498 - As per Entitlement Employee Mr.Mumtaz Ahmed Farooq
Vehicles 2,723 1,271 1,271 - As per Entitlement Employee Mr.Nasir Khan
Vehicles 2,525 842 842 - As per Entitlement Employee Mr.Mubashir Ahmed
Vehicles 2,775 1,711 1,711 - As per Entitlement Employee Mr.Moeen-Ud-Din
49,452 21,801 22,410 609
Computer and peripheral equipment 101 - 10 10 As per Entitlement Employee Mr.Javed Ashraf
Computer and peripheral equipment 100 - 10 10 As per Entitlement Employee Mr.Agha Abdul Hakeem
Computer and peripheral equipment 115 - 12 12 As per Entitlement Employee Ms.Hina Saleem
Computer and peripheral equipment 111 - 11 11 As per Entitlement Employee Mr.Khalid Ahmed
Computer and peripheral equipment 122 - 12 12 As per Entitlement Employee Mr.Zeeshan Siddiqui
Computer and peripheral equipment 127 - 13 13 As per Entitlement Employee Mr.Azmat Zuberi
Computer and peripheral equipment 64 - 6 6 As per Entitlement Employee Mr.Muhammad Adeel Khan
Computer and peripheral equipment 112 - 11 11 As per Entitlement Employee Mr.Murshid Ali Khan
Computer and peripheral equipment 268 - 27 27 As per Entitlement Employee Mr.Amin Manji
Computer and peripheral equipment 121 - 12 12 As per Entitlement Employee Mr.Vinod Kumar
Computer and peripheral equipment 127 - 13 13 As per Entitlement Employee Mr.Maqsood Ahmed Siddiqui
Computer and peripheral equipment 126 - 13 13 As per Entitlement Employee Mr.Raheel Iqbal
Computer and peripheral equipment 109 - 11 11 As per Entitlement Employee Ms.Sana Aslam
Computer and peripheral equipment 99 - 10 10 As per Entitlement Employee Mr.Aijaz Hyder Shaikh
Computer and peripheral equipment 64 - 6 6 As per Entitlement Employee Mr.Sabghatullah Shaikh
Computer and peripheral equipment 224 - 22 22 As per Entitlement Employee Mr.Abdul Wahid Sethi
Computer and peripheral equipment 127 - 13 13 As per Entitlement Employee Mr.Amer Nasrullah
Computer and peripheral equipment 118 - 12 12 As per Entitlement Employee Mr.Hamid Hassan
Computer and peripheral equipment 118 - 12 12 As per Entitlement Employee Mr.Umair Asghar Khan
Computer and peripheral equipment 140 - 14 14 As per Entitlement Employee Mr.Asif Khan
Computer and peripheral equipment 124 - 12 12 As per Entitlement Employee Mr.Waqee Siddiqui
Computer and peripheral equipment 125 - 13 13 As per Entitlement Employee Mr.Wajahat Aziz Qureshi
Computer and peripheral equipment 122 - 12 12 As per Entitlement Employee Mr.Tahir Abbas
Computer and peripheral equipment 122 - 12 12 As per Entitlement Employee Mr.Ehtisham Rashid
Computer and peripheral equipment 128 - 13 13 As per Entitlement Employee Mr.Abdul Waheed Sabir
Computer and peripheral equipment 121 - 12 12 As per Entitlement Employee Ms.Sapna
Computer and peripheral equipment 120 - 12 12 As per Entitlement Employee Mr.Faisal Khan
Computer and peripheral equipment 112 - 11 11 As per Entitlement Employee Ms.Ramsha Areeb
Computer and peripheral equipment 118 - 12 12 As per Entitlement Employee Mr.Zubair Ahmed
Computer and peripheral equipment 128 - 13 13 As per Entitlement Employee Ms.Amber Salim
Computer and peripheral equipment 134 - 13 13 As per Entitlement Employee Mr.Shoaib Qaisarani
Computer and peripheral equipment 113 - 11 11 As per Entitlement Employee Ms.Fouzia Nawaz Baloch
Computer and peripheral equipment 120 - 12 12 As per Entitlement Employee Mr.Arif
Computer and peripheral equipment 115 - 11 11 As per Entitlement Employee Mr.Nauman Ahmed

Gain /
disposal
------------------------(Rupees in '000)---------------------
Computer and peripheral equipment 118 - 12 12 As per Entitlement Employee Mr.Amir Khan
Computer and peripheral equipment 121 - 12 12 As per Entitlement Employee Mr.Khurram Jafri
Computer and peripheral equipment 159 - 16 16 As per Entitlement Employee Mr.Sufyan Islam
Computer and peripheral equipment 112 - 11 11 As per Entitlement Employee Mr.Muhammad Ahmer
Computer and peripheral equipment 99 - 10 10 As per Entitlement Employee Mr.Rehmat Ali Hasnie
Computer and peripheral equipment 145 - - - As per Entitlement Employee Mr.Rehmat Ali Hasnie
Computer and peripheral equipment 227 - 23 23 As per Entitlement Ex-Employee Ms.Asma Shaikh
Computer and peripheral equipment 128 - 13 13 As per Entitlement Employee Mr. Syed Arshad Ali
Computer and peripheral equipment 96 - 10 10 As per Entitlement Ex-Employee Mr. Syed Jamal Baquar
Computer and peripheral equipment 102 - 10 10 As per Entitlement Ex-Employee Ms.Saima Abdul Rashid
Computer and peripheral equipment 64 - 6 6 As per Entitlement Ex-Employee Mr.S Shoaib Ur Rehman
Computer and peripheral equipment 99 - 10 10 As per Entitlement Ex-Employee Mr.Muhammad Mubashir Ahmed
Computer and peripheral equipment 96 - 10 10 As per Entitlement Ex-Employee Mr.Mumtaz A Farooq
Computer and peripheral equipment 100 - 10 10 As per Entitlement Ex-Employee Mr.Muhammad Farukh Ghauri
Computer and peripheral equipment 191 - - - As per Entitlement Ex-Employee Mr.Umair Wasti
Computer and peripheral equipment 131 - 13 13 As per Entitlement Ex-Employee Mr.Muhammad Fuad Mohsin
Computer and peripheral equipment 193 - - - As per Entitlement Ex-Employee Mr.Nauman Riaz
6,708 - 604 604
Electrical & Office equipments 135 - - - As per Entitlement Employee Mr.Rehmat Ali Hasnie
Electrical & Office equipments 331 - - - As per Entitlement Ex-Employee Ms.Asma Shaikh
Electrical & Office equipments 306 - - - As per Entitlement Ex-Employee Mr.Nauman Riaz
Electrical & Office equipments 50 - - - As per Entitlement Ex-Employee Ms.Saima Abdul Rashid
Electrical & Office equipments 114 - - - As per Entitlement Ex-Employee Mr.Jamal Baqaur
Electrical & Office equipments 70 - - - As per Entitlement Ex-Employee Mr.Ali Mansoor
Electrical & Office equipments 265 - - - As per Entitlement Ex-Employee Mr.Umair Wasti
Electrical & Office equipments 40 - - - As per Entitlement Ex-Employee Mr. Muhammad Fuad Mohsin
Electrical & Office equipments 42 - - - As per Entitlement Ex-Employee Mr.Muhammad Fuad Mohsin
Electrical & Office equipments 800 573 573 - As per Entitlement Ex-Employee Mr.Jamal Baqaur
Electrical & Office equipments 800 427 427 - As per Entitlement Ex-Employee Mr.Ali Mansoor
4,419 1,000 1,000 -
Furniture and fixture 225 37 37 - As per Entitlement Ex-Employee Mr.Naveed Sultan

Furniture and fixture 160 15 15 - As per Entitlement Ex-Employee Mr.Muhammad Yahya
Furniture and fixture 330 19 19 - As per Entitlement Ex-Employee Mr.Javed Haider
Furniture and fixture 160 18 18 - As per Entitlement Ex-Employee Mr.Manzoor Hussain Niza
Furniture and fixture 160 33 33 - As per Entitlement Ex-Employee Mr.Syed Amjad Hussain Bukhari
Furniture and fixture 160 45 45 - As per Entitlement Ex-Employee Ms.Sumbul Akhter
Furniture and fixture 160 51 51 - As per Entitlement Ex-Employee Ms.Samreen Zehra
Furniture and fixture 160 1 1 - As per Entitlement Ex-Employee Mr.Ahmed Kashif Khan
Furniture and fixture 160 53 53 - As per Entitlement Ex-Employee Mr.Muhammad Akbar
Furniture and fixture 160 16 16 - As per Entitlement Ex-Employee Mr.Rafiq Ahmed
Furniture and fixture 160 41 41 - As per Entitlement Ex-Employee Mr.Asghar Hameed
Furniture and fixture 160 60 60 - As per Entitlement Ex-Employee Mr.Muhammad Najeeb Hassan
Furniture and fixture 160 49 49 - As per Entitlement Ex-Employee Mr.Muhammad Akram Khan
Furniture and fixture 190 48 48 - As per Entitlement Ex-Employee Mr.Muhammad Yousuf Raza
Furniture and fixture 190 18 18 - As per Entitlement Ex-Employee Mr. Syed Taha Tanveer Ali
Furniture and fixture 160 63 63 - As per Entitlement Ex-Employee Mr.Late Amjad
Furniture and fixture 160 1 1 - As per Entitlement Ex-Employee Mr.Aftab Azeem
Furniture and fixture 225 62 62 - As per Entitlement Ex-Employee Mr.Saeed Ahmed Shah
Furniture and fixture 160 144 144 - As per Entitlement Ex-Employee Mr.Naeem Hassan
Furniture and fixture 200 127 127 - As per Entitlement Ex-Employee Mr.Syed Murtaza Shah

Gain /
disposal
------------------------(Rupees in '000)---------------------
Furniture and fixture 200 107 107 - As per Entitlement Ex-Employee Mr.Imtiaz Ahmed Shaikh
Furniture and fixture 190 63 63 - As per Entitlement Ex-Employee Mr.Amanullah
Furniture and fixture 160 5 5 - As per Entitlement Ex-Employee Mr.Aamir Rizwan
Furniture and fixture 160 44 44 - As per Entitlement Ex-Employee Mr.Shahadat Hussain
Furniture and fixture 50 - - - As per Entitlement Ex-Employee Mr.Masihullah
Furniture and fixture 190 38 38 - As per Entitlement Ex-Employee Mr.Arshad Rizwan
Furniture and fixture 335 89 89 - As per Entitlement Ex-Employee Mr.Dr.Jalil Ahmad Tariq
Furniture and fixture 160 44 44 - As per Entitlement Ex-Employee Mr.Sakhi Jan Khattak
Furniture and fixture 190 22 22 - As per Entitlement Ex-Employee Mr.Mansoor Ahmad
Furniture and fixture 160 43 43 - As per Entitlement Ex-Employee Mr.Abdul Hafeez Sehto
Furniture and fixture 190 93 93 - As per Entitlement Ex-Employee Mr.Muhammad Ayub
Furniture and fixture 160 32 32 - As per Entitlement Ex-Employee Mr.Tariq Majeed Malkana
Furniture and fixture 160 27 27 - As per Entitlement Ex-Employee Mr.Muhammad Sharif
Furniture and fixture 160 51 51 - As per Entitlement Ex-Employee Mr.Mir Faiz Hussain Talpur
Furniture and fixture 160 29 29 - As per Entitlement Ex-Employee Mr.Sobho Zardari
Furniture and fixture 200 28 28 - As per Entitlement Ex-Employee Mr.Muhammad Farrukh Ghauri
Furniture and fixture 160 20 20 - As per Entitlement Ex-Employee Mr.Muhammad Shoaib
Furniture and fixture 160 52 52 - As per Entitlement Ex-Employee Mr.Saleh Muhammad Baloch
Furniture and fixture 160 52 52 - As per Entitlement Ex-Employee Mr. Syed Wajid Ali
Furniture and fixture 335 104 104 - As per Entitlement Ex-Employee Mr.Muhammad Zaman Khan
Furniture and fixture 160 47 47 - As per Entitlement Ex-Employee Mr.Amjad Masood
Furniture and fixture 200 58 58 - As per Entitlement Ex-Employee Mr.Abdul Majid Sheikh
Furniture and fixture 200 63 63 - As per Entitlement Ex-Employee Mr.Noor Ul Islam
Furniture and fixture 175 - - - As per Entitlement Ex-Employee Mr.Abdul Jamal Tariq Hassan
Furniture and fixture 200 53 53 - As per Entitlement Ex-Employee Mr.Muhammad Mumtaz Ahmed Farooq
Furniture and fixture 160 25 25 - As per Entitlement Ex-Employee Mr.Ishrat Bokhari
Furniture and fixture 160 39 39 - As per Entitlement Ex-Employee Mr.Mansoor Ahmed
Furniture and fixture 190 33 33 - As per Entitlement Ex-Employee Mr.Ashraf Ali Abbasi
Furniture and fixture 200 27 27 - As per Entitlement Ex-Employee Mr.Nasir Khan
Furniture and fixture 175 6 6 - As per Entitlement Ex-Employee Mr.Rao Naeem Ahmed
Furniture and fixture 160 11 11 - As per Entitlement Ex-Employee Mr.Gohar Abbas
Furniture and fixture 190 41 41 - As per Entitlement Ex-Employee Mr.Muhamamd Nabi
Furniture and fixture 160 45 45 - As per Entitlement Ex-Employee Mr.Zafar Irshad
Furniture and fixture 200 45 45 - As per Entitlement Ex-Employee Mr.Shamim Ul Hassan Waheed
Furniture and fixture 160 43 43 - As per Entitlement Ex-Employee Mr.Muhammad Yousaf
Furniture and fixture 200 55 55 - As per Entitlement Ex-Employee Mr.Manzoor Ahmad
Furniture and fixture 160 32 32 - As per Entitlement Ex-Employee Mr.Arshad Ali
10,290 2,467 2,467 -
70,869 25,268 26,481 1,213

9 (0) 2 2
2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
13. INTANGIBLE ASSETS
Capital work-in-progress 441,922 841,289
Intangible assets 13.1 1,068,139 547,658
1,510,061 1,388,947

Core Banking Computer

Total
13.1 Intangible assets Application software
--------------------- (Rupees in '000) ---------------------
At January 1, 2023
Cost 2,913,952 2,046,931 4,960,883
Accumulated amortisation and impairment (2,913,952) (1,499,273) (4,413,225)
Net book value - 547,658 547,658

Opening net book value - 547,658 547,658
Additions:
- through acquisitions / purchase - 679,533 679,533
Adjustments - addition - 29,212 29,212
Amortisation charge - (277,042) (277,042)
Exchange rate adjustments - 88,778 88,778
Closing net book value - 1,068,139 1,068,139

Cost 2,913,952 2,844,454 5,758,406
Net book value - 1,068,139 1,068,139
33.33 % on 33.33 % on
Rate of amortisation (percentage) cost cost
Useful life 3 years 3 years
At January 1, 2022
Cost 2,913,952 1,678,915 4,592,867
Net book value - 502,791 502,791

Opening net book value - 502,791 502,791
Additions:
- through acquisitions / purchase - 296,497 296,497
Adjustments - additions - 28,750 28,750
Amortisation charge - (323,149) (323,149)
Exchange rate adjustments - 42,769 42,769
Closing net book value - 547,658 547,658

Cost 2,913,952 2,046,931 4,960,883
Net book value - 547,658 547,658
33.33 % on 33.33 % on
Rate of amortisation (percentage) cost cost
Useful life 3 years 3 years

2023 2022
----------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
13.2 The cost of fully amortised intangible assets that are still in use
Core Banking Application 2,913,952 2,913,952

Computer software 916,177 821,389
3,830,129 3,735,341
14. RIGHT OF USE ASSETS
Opening balance 6,708,404 6,605,400

Additions during the year 2,239,854 2,244,669
Less: Derecognition during the year 22,813 6,618
Less: Depreciation charged for the year 1,990,974 2,135,047
Closing balance 6,934,471 6,708,404
15. DEFERRED TAX ASSETS / (DEFERRED TAX LIABILITIES)
Recognised in
Recognised in
At January 01, other At December 31,
profit and loss
2023 comprehensive 2023
account
income
----------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------------------------
Deductible temporary differences on
- Tax losses carried forward 10,705 - - 10,705

- Post retirement employee benefits 7,352,695 - (490,685) 6,862,010
- Provision for diminution in the value of investments 236,751 - - 236,751
- Provision against loans and advances 12,925,197 (2,781,685) - 10,143,512
- Provision against off-balance sheet obligations 115,222 - - 115,222
- Fixed assets 1,506,288 154,893 - 1,661,181
- Other provisions 105,416 - - 105,416
- Right of use assets 670,604 (18,752) - 651,852
22,922,878 (2,645,544) (490,685) 19,786,649
Taxable temporary differences on
- Surplus on revaluation of fixed assets (3,061,347) 174,426 (435,908) (3,322,829)

- Surplus on revaluation of investments 3,208,913 - (19,432,225) (16,223,312)
- Surplus on revaluation of non-banking assets (21,752) - (85,096) (106,848)
- Exchange translation reserve (749,289) - (104,554) (853,843)
(623,475) 174,426 (20,057,783) (20,506,832)
22,299,403 (2,471,118) (20,548,468) (720,183)

Recognised in
Recognised in
At January 01, other At December 31,
profit and loss
2022 comprehensive 2022
account
income
------------------------------------------- (Rupees in 000) -------------------------------------------
Deductible Temporary Differences on
- Post retirement employee benefits 4,992,150 - 2,360,545 7,352,695
- Provision against loan and advances 10,457,938 2,467,259 - 12,925,197
- Fixed assets 1,190,369 315,919 - 1,506,288
- Other provisions 105,416 - - 105,416
- Right of use assets 502,538 168,066 - 670,604
17,611,089 2,951,244 2,360,545 22,922,878
Taxable Temporary Differences on
- Surplus on revaluation of investments (12,715,420) - 15,924,333 3,208,913
- Surplus on revaluation of non-banking assets (52,732) - 30,980 (21,752)
(15,985,442) 149,127 15,212,840 (623,475)
1,625,647 3,100,371 17,573,385 22,299,403
2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
16. OTHER ASSETS
Income / return / mark-up accrued in local currency - net of provision 185,622,776 99,433,212
Income / return / mark-up accrued in foreign currency - net of provision 4,442,554 3,866,901
Advances, deposits, advance rent and other prepayments 16.1 2,848,659 2,987,346
Advance taxation (payments less provisions) and Income tax
refunds receivable 16.6 920,050 10,952,064
Compensation for delayed tax refunds 22,129,925 20,809,580
Non-banking assets acquired in satisfaction of claims 16.4 1,169,898 1,179,943
Assets acquired from Corporate and Industrial Restructuring
Corporation (CIRC) 208,423 208,423
Acceptances 8,100,364 20,644,122
Commission receivable on Government treasury transactions 5,182,665 5,253,389
Stationery and stamps on hand 472,575 437,900
Barter trade balances 195,399 195,399
Receivable on account of Government transactions 16.2 323,172 323,172
Receivable from Government under VHS scheme 16.3 418,834 418,834
Receivable against sale of shares 31,276 156,755
Receivable from SBP 24,698,013 -
Others 9,027,170 8,126,059
265,791,753 174,993,099
Less: Provision held against other assets 16.5 12,495,413 12,244,043
Other assets (net of provision) 253,296,340 162,749,056
Surplus on revaluation of non-banking assets acquired in

satisfaction of claims 24 2,803,228 2,520,000
Other assets - total 256,099,568 165,269,056

16.1 This includes Rs. 1,400 million (2022: Rs. 1,400 million) advance against Pre-IPO placement of Term Finance
Certificates and REIT Fund.
16.2 This represents amount receivable from GoP on account of encashment of various instruments handled by the
Bank for GoP as an agent of the SBP. Due to uncertainty about its recoverability, full amount has been provided
for.
16.3 This represents payments made under the Voluntary Handshake Scheme (VHS), recoverable from GoP. Due to
uncertainty about its recoverability, full amount has been provided for.
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
16.4 Market value of Non-banking assets acquired in satisfaction of claims 3,973,126 3,699,943
-
An independent valuation of the Bank’s non-banking assets was performed by an independent professional
valuer to determine the fair value of the assets as at December 31, 2023. The valuation was carried out by K.G.
Traders (Pvt) Ltd. (PBA registered valuer) on the basis of an assessment of present market values.
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
16.4.1 Non-banking assets acquired in satisfaction of claims

Surplus / (Deficit) 283,228 (343,886)
Depreciation (10,045) (15,717)
16.5 Provision held against other assets
Income / mark-up accrued in local currency 152,607 152,607

Advances, deposits, advance rent and other prepayments 800,000 800,000
Receivable on account of Government transactions 323,172 323,172
Receivable from Government under VHS scheme 418,834 418,834
Protested bills 4,377,337 4,297,516
Ex-MBL / NDFC 760,941 760,875
Assets acquired from Corporate and Industrial Restructuring
Corporation asset (CIRC) 208,423 208,423
Others 5,162,158 4,990,675
12,495,413 12,244,043
16.5.1 Movement in provision held against other assets
Opening balance 12,244,043 11,700,956

Charge for the year 239,045 562,955
Other movement 57,519 -
Adjustment against provision (45,194) (19,868)
Closing balance 12,495,413 12,244,043
16.6 During the year, the Bank has adjusted an amount of Rs. 9,099 million (2022: Rs. 7,475 million) against its
advance tax liability and demand of previous tax year against income tax refunds receivables. Further, refunds
amounting to Rs. 10,650 million (2022: 5,404 million) were also determined.

2023 2022
Note
----------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
17. BILLS PAYABLE
In Pakistan 67,822,126 54,969,587

Outside Pakistan 178,322 298,432
68,000,448 55,268,019
18. BORROWINGS
Secured
Borrowings from State Bank of Pakistan
Under Export Refinance Scheme 18.2 29,815,400 37,142,580
Financing Scheme for Renewable Energy 18.3 1,289,488 1,019,611
Refinance Facility for Modernization of SMEs 18.4 95,111 43,824
Financing Facility for storage of Agriculture Produce (FFSAP) 18.5 599,548 667,327
Under Long Term Financing Facility (LTFF) 18.6 17,197,820 20,254,808
Refinance Scheme for Payment of Wages and Salaries 18.7 - 35,950
Temporary Economic Refinance Facility 18.8 22,827,889 24,126,421
Refinance and Credit Guarantee Scheme for
Women Entrepreneurs (RCWE) 18.9 29,220 -
Refinance Facility for Combating Covid-19 18.10 45,352 66,159
Export Refinance scheme for Bill Discounting 18.11 2,606,143 1,075,204
74,505,971 84,431,884
Repurchase agreement borrowings 18.12 2,064,472,106 1,826,206,763

Bai Muajjal 18.13 - 4,036,995
Total secured 2,138,978,077 1,914,675,642
Unsecured
Call borrowing 18.12 19,434,142 25,810,145
Overdrawn nostro accounts 19,330,975 -
Total unsecured 38,765,117 25,810,145
2,177,743,194 1,940,485,787
18.1 Particulars of borrowings with respect to currencies

2,177,743,194 1,940,485,787
18.2 The Bank has entered into an agreement with the SBP for extending export finance to customers. As per the
terms of the agreement, the Bank has granted the SBP the right to recover the outstanding amounts from the
Bank at the date of maturity of the finances by directly debiting the Bank's current account maintained with the
SBP. These borrowings are repayable within 180 days. These carry mark-up at rates ranging from 13.00% to
19.00% (2022: 3.00% to 13.00%) per annum.

18.3 These borrowings have been obtained from the SBP for providing financing facilities to address challenges of
energy shortage and climate change through promotion of renewable energy. These borrowings shall be
repayable for a maximum period of twelve (12) years. These carry mark-up at rates ranging from 2.00% to
3.00% (2022: 2.00% to 3.00%) per annum.
18.4 These borrowings have been obtained from the SBP under a scheme to finance modernization of Small and
Medium Enterprises by providing financing facilities for setting up of new units, purchase of new plant and
machinery for Balancing, Modernization and Replacement (BMR) of existing units and financing for import /
local purchase of new generators upto a maximum capacity of 500 KVA. These borrowings shall be repayable
for a maximum period of ten years and carry mark-up at rates upto 2.00% (2022: 2.00%) per annum.
18.5 These borrowings have been obtained from the SBP for providing financing facilities to develop the agricultural
produce marketing and enhance storage capacity, to encourage Private Sector to establish Silos, Warehouses
and Cold Storages. These borrowings shall be repayable for a maximum period of ten years. These carry mark-
up at rates ranging from 2.5% to 3.5% (2022: 2.5% to 3.5%) per annum.
18.6 These borrowings have been obtained from the SBP for providing financing facilities to exporters for adoption of
new technologies and modernization of their plant and machinery. These borrowings shall be repayable for a
maximum period of ten years. These carry mark-up at rates ranging from 4.0% to 19.0% (2022: 2.00% to
4.00%) per annum.
18.7 These borrowings have been obtained from the SBP with a view to support businesses to continue payment of
wages and salaries to their workers and employees in the aftermath of corona virus (COVID-19) outbreak.
These borrowings are repayable for a maximum period of 2.5 years. These carry mark-up at rates ranging from
Nil (2022: 1.00% to 2.00%) per annum.
18.8 These borrowings have been obtained from the SBP under a scheme to provide concessionary refinance for
setting up new industrial units in the backdrop of challenges faced by the industries during the pandemic. These
borrowings are repayable for a maximum period of 10 years. These carry mark-up at a rate of 1.0% (2022:
3.00%) per annum.
18.9 These borrowings have been obtained from the SBP for improving access to finance for the women
entrepreneurs, a refinance cum credit guarantee scheme is being launched for the women borrowers across the
country. Under the scheme, refinancing will be provided by State Bank of Pakistan at 0% to participating
financial institutions for onward lending to women entrepreneurs across the country at a mark-up rate of upto
5% per annum.
18.10 These borrowings have been obtained from the SBP with a view to provide long term local currency finance for
imported and locally manufactured medical equipment to be used for combating COVID – 19. The facility will be
available to all the Hospitals and Medical Centres duly registered with respective provincial / federal agencies /
commissions and engaged in controlling & eradication of COVID – 19. These borrowings are repayable for a
maximum period of 5 years. These carry mark-up at rates at 0.00% (2022: 0.00%) per annum.
18.11 These borrowings have been obtained from the SBP for providing export bill discounting facilities to customers.
These carry mark-up at rates ranging from 1.00% to 2.00% per annum (2022: 0.00% to 2.00% per annum) and
are due to mature latest by May 7, 2024.
18.12 Mark-up / interest rates and other terms are as follows:
- Repurchase agreement borrowings carry mark-up ranging from 21.75% to 23% per annum (2022: 15.2% to
17% per annum) having maturity on January 2, 2024 to January 19, 2024.
- Call borrowings carry interest ranging from 5.50% to 21.80% per annum (2022: 3% to 16.5% per annum).
18.13 Bai Muajjal borrowings carry mark-up rate of 0% per annum (2022: 16.42%).

18.14 Borrowings from the SBP under export oriented projects refinance schemes of the SBP are secured by the
Bank's cash and security balances held by the SBP.
18.15 Pakistan Investment Bonds and Market Treasury Bills having maturity of 2 - 10 Years and 3 - 12 Months
respectively, are pledged as security under borrowing having carrying amount of Rs. 2,064,472 million (2022:
Rs. 1,826,206 million).
19. DEPOSITS AND OTHER ACCOUNTS

2023 2022
In local In foreign In local In foreign
Total Total
currency currencies currency currencies
Note
----------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------
Customers
Current deposits -
remunerative 692,443,686 - 692,443,686 733,037,562 - 733,037,562
Current deposits -
non-remunerative 656,289,463 161,079,615 817,369,078 408,169,670 159,575,493 567,745,163
Savings deposits 766,301,047 134,394,831 900,695,878 681,287,543 108,029,851 789,317,394
Term deposits 509,997,709 232,985,846 742,983,555 400,618,865 116,541,863 517,160,728
Others 13,082,003 7,182 13,089,185 9,563,715 7,855 9,571,570
2,638,113,908 528,467,474 3,166,581,382 2,232,677,355 384,155,062 2,616,832,417
Financial Institutions
Current deposits 459,284,217 1,386,759 460,670,976 5,964,408 3,479,121 9,443,529
Term deposits 13,569,258 3,636,495 17,205,753 10,472,787 6,442,283 16,915,070
Others 6,310,317 - 6,310,317 4,878,234 - 4,878,234
498,110,069 9,667,928 507,777,997 36,505,757 12,846,186 49,351,943
19.3 3,136,223,977 538,135,402 3,674,359,379 2,269,183,112 397,001,248 2,666,184,360
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
19.1 Composition of deposits
Individuals 1,220,898,183 990,051,893

Government (Federal and Provincial) 1,255,786,576 1,101,408,344
Public Sector Entities 385,531,338 244,103,310
Banking companies 472,952,639 20,352,976
Non-Banking Financial Institutions 34,825,358 28,998,967
Private sector 304,365,285 281,268,870
3,674,359,379 2,666,184,360
19.2 Foreign currencies deposits include deposit of foreign branches amounting to Rs. 99,316 million (2022: Rs.
75,917 million).
19.3 This includes deposits eligible to be covered under insurance arrangements amounting to Rs. 1,013,777 million
(2022: Rs. 870,538 million) including islamic branches.

2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
20. LEASE LIABILITIES AGAINST RIGHT OF USE ASSETS
Lease liabilities included in the statement of financial position

As at December 31 8,264,782 8,267,949
-
Of which are:
Current lease liability 1,687,498 1,590,849
Non-current lease liability 6,577,284 6,677,100
8,264,782 8,267,949
Maturity analysis - contractual undiscounted cash flows

Less than one year 2,457,041 2,356,198
One to five years 6,711,336 6,557,449
More than five years 3,122,714 7,967,022
Total undiscounted lease liabilities as at December 31 12,291,091 16,880,669
21. OTHER LIABILITIES
Mark-up / Return / Interest payable in local currency 194,548,283 126,228,969

Mark-up / Return / Interest payable in foreign currency 2,611,281 655,802
Unearned commission and income on bills discounted 101,350 252,539
Accrued expenses 13,684,726 13,865,133
Advance payments 346,109 350,895
Acceptances 8,100,364 20,644,122
Unclaimed dividends 174,284 181,851
Mark to market loss on forward foreign exchange contracts 6,676,880 125,371
Unrealised loss on put option - -
Branch adjustment account 1,659,214 1,916,850
Payable to defined benefit plan:
Pension fund 39.4 22,944,893 23,063,894
Post retirement medical benefits 39.4 34,833,112 29,176,898
Benevolent scheme 39.4 1,613,699 1,697,838
Gratuity scheme 39.4 4,575,660 3,767,858
Compensated absences 39.4 9,632,176 8,734,235
Provision against off-balance sheet obligations 627,494 627,494
Provision against contingencies 21.1 4,698,118 4,170,799
Staff welfare fund 371,257 371,257
Liabilities relating to barter trade agreements 4,321,484 3,629,389
Payable to brokers 735,663 350,446
PIBs shortselling 10,241,337 11,043,029
Others 18,366,475 18,516,003
340,863,859 269,370,672

2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
21.1 Provision against contingencies

Charge during the year 384,838 165,423
Other movement 142,481 200,000
Closing balance 21.1.1 4,698,118 4,170,799
21.1.1 This represents provision made on account of regulatory violations and reported instances of financial
improprieties for which investigations are in progress.
22. SHARE CAPITAL
22.1 Authorized capital
2023 2022 2023 2022

------ (Number of shares) ------
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
2,500,000,000 2,500,000,000 Ordinary shares of Rs. 10 each 25,000,000 25,000,000
22.2 Issued, subscribed and paid up
2023 2022 2023 2022

------ (Number of shares) ------
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
140,388,000 140,388,000 Fully paid in cash 1,403,880 1,403,880

1,987,125,026 1,987,125,026 Issued as bonus shares 19,871,251 19,871,251
2,127,513,026 2,127,513,026 21,275,131 21,275,131
The Federal Government and Pakistan Sovereign Wealth Fund (PSWF) holds 75.60% (2022: Federal
Government and SBP 75.60%) shares of the Bank.
22.3 The Pakistan Sovereign Wealth Fund Act, 2023 became effective during the current period. Under the said Act,
the SBP’s shareholding in the Bank stands transferred to the Pakistan Sovereign Wealth Fund (PSWF).
2023 2022
--------------------------------------------------------------------------------------------------------------------------------------------(Number of shares)------------------------------
22.4 Shares of the Bank held by subsidiary and associate
Following shares were held by the associate of the Bank as of year end:
First Credit & Investment Bank Limited 70,000 70,000
70,000 70,000
23. RESERVES
23.1 Exchange translation reserve
This comprises all foreign currency differences arising from the translation of the financial statements of foreign
operations.

23.2 Statutory reserve
Every bank incorporated in Pakistan is required to transfer 20% of their profits to a statutory reserve until the
reserve equals share capital, thereafter 10% of the profits of the Bank are to be transferred to this reserve.
23.3 Merger reserve
As per the Scheme of Amalgamation, all the assets, liabilities and obligations of NBP Leasing Limited were
merged with, transferred to, vested in and assumed by the Bank as at the effective date July 31, 2017. The
reserve represents the excess of net assets transferred to the Bank over its investment in NBP Leasing Limited.
2023 2022
24. SURPLUS ON REVALUATION OF ASSETS Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
Surplus / (deficit) on revaluation of:

- Available for sale securities 10.1 33,108,801 (7,462,594)
- Fixed assets 24.1 47,395,553 47,733,682
- Non-banking assets acquired in satisfaction of claims 24.2 2,803,228 2,520,000
83,307,582 42,791,088
Deferred tax on (surplus) / deficit on revaluation of:
- Available for sale securities (16,223,312) 3,208,913
- Fixed assets 24.1 (3,322,829) (3,061,347)
- Non-banking assets acquired in satisfaction of claims 24.2 (106,848) (21,752)
(19,652,989) 125,814
63,654,593 42,916,902
24.1 Surplus on revaluation of fixed assets
Surplus on revaluation of fixed assets as at January 1 47,733,682 44,320,452

Recognised during the year 17,842 3,691,784
Transferred to unappropriated profit in respect of incremental
depreciation charged during the year - net of deferred tax (181,545) (197,684)
Adjustment - 68,260
Related deferred tax liability on incremental
depreciation charged during the year (174,426) (149,130)
Surplus on revaluation of fixed assets as at December 31 47,395,553 47,733,682
Less: related deferred tax liability on:

- revaluation as at January 1 (3,061,347) (2,537,701)
- revaluation recognised during the year (8,743) (412,499)
- Rate adjustment (427,165) (260,277)
- incremental depreciation charged during the year 174,426 149,130
(3,322,829) (3,061,347)
44,072,724 44,672,335

2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
24.2 Surplus on revaluation of non-banking assets
acquired in satisfaction of claims
Surplus on revaluation as at January 1 2,520,000 2,863,886

(Deficit) / surplus recognised during the year 283,228 (343,886)
Surplus on revaluation as at December 31 2,803,228 2,520,000

- revaluation as at January 1 (21,752) (52,732)
- revaluation recognised during the year (82,060) 42,022
- Rate adjustment (3,036) (11,042)
(106,848) (21,752)
2,696,380 2,498,248
25. CONTINGENCIES AND COMMITMENTS
Guarantees 25.1 346,487,980 377,561,372

Commitments 25.2 2,362,684,359 2,373,285,184
Other contingent liabilities 25.3 26,628,229 26,619,691
2,735,800,568 2,777,466,247
25.1 Guarantees
Financial guarantees 227,063,459 287,741,990

Performance guarantees 119,424,521 89,819,382
346,487,980 377,561,372
25.2 Commitments
Documentary credits and short-term trade-related transactions

- letters of credit 1,633,847,479 1,696,635,726
Commitments in respect of:

- forward foreign exchange contracts 25.2.1 655,935,358 570,881,591
- forward government securities transactions 25.2.2 27,318,929 54,568,834
- forward lending 25.2.3 44,432,555 50,363,949
Commitments for acquisition of:

- operating fixed assets 1,129,442 798,234
Other commitments 25.2.4 20,596 36,850

2,362,684,359 2,373,285,184
25.2.1 Commitments in respect of forward foreign exchange contracts
Purchase 412,870,783 368,380,755

Sale 243,064,575 202,500,836
655,935,358 570,881,591
Commitments for outstanding forward foreign exchange contracts are disclosed in these unconsolidated
financial statements at contracted rates. Commitments denominated in foreign currencies are expressed in
rupee terms at the rates of exchange prevailing at the statement of financial position date.

2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
25.2.2 Commitments in respect of forward government securities transactions
Purchase 11,493,136 10,988,627

Sale 15,825,793 43,580,207
27,318,929 54,568,834
Commitments for outstanding forward government securities transactions are disclosed in these unconsolidated
financial statements at contracted rates.
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
25.2.3 Commitments in respect of forward lending
Undrawn formal standby facilities, credit lines and other commitments to lend 44,432,555 50,363,949
These represent commitments that are irrevocable because they cannot be withdrawn at the discretion of the
bank without the risk of incurring significant penalty or expense.
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
25.2.4 Other commitments
Professional services to be received 20,596 36,850
25.3 Other contingent liabilities
25.3.1 Claims against the Bank not acknowledged as debt 26,628,229 26,619,691
25.3.2 Claims against the Bank not acknowledged as debts includes claims relating to former Mehran Bank Limited
amounting to Rs. 1,597 million (2022: Rs. 1,597 million).
25.3.3 Taxation
- The return of income for tax year 2023 has been filed which is treated to be deemed assessment order.
- Taxation Officer, following the instructions / directions of the learned CIRA, has passed the appeal effect
orders for tax years 2019, 2020 and 2022 wherein the tax liability / (refund) has been assessed at (Rs.
1,852) million, Rs. 1,997 million and (Rs. 8,774) million respectively.
- Honourable ATIR has passed appellate orders for tax year 2006 and 2007 against monitoring orders and
held that the proceedings are time barred. However, the orders of the DCIR remanded back to the
assessing officer with the instruction to proceed further if any information is already available with the tax
department.
- Honourable ATIR has passed appellate order for tax year 2016 against monitoring order and remanded
back the issues to the assessing officer for reverification of the facts following the instructions of ATIR.
- The aggregate effect of contingencies as on December 31, 2023, including amount of Rs. 1,912 million
(December 31, 2022: Rs. 1,912 million) in respect of indirect tax issues, amounts to Rs. 34,730 million

(December 31, 2022: Rs. 27,159 million). No provision has been made against these contingencies, based
on the opinion of tax consultant of the Bank, who expect favorable outcome upon decisions of pending
appeals.
25.3.4 Contingencies in respect of employees benefits and related matters
The following are the details of the contingencies arising out of the various legal cases pending adjudication in
respect of employees’ benefits and related matters. The Bank considers that except for Pensionary benefits
note 25.3.4.1, the financial impact of other matters is impracticable to determine with sufficient reliability.
25.3.4.1 Pensionary benefits to retired employees
In 1977 the Federal Government vide letter No. 17 (9) 17 XI / 77 dated November 30, 1977, addressed to the
Pakistan Banking Council, directed that all executives / officers of all the nationalized banks would be paid
pension as calculated at 70% of average emoluments upon completion of 30 years of qualifying service of
employees and where qualifying service was less than 30 years but not less than 10 years, proportionate
reduction in percentage was to be made. This pension scheme was made applicable with effect from May 01,
1977.
In the year 1997, the Banks Nationalization Act, 1974 (“BNA, 1974”) was substantially amended whereby the
Pakistan Banking Council was abolished and the Board of Directors of the nationalized banks were empowered
/ mandated respectively to determine personnel policies with the President of the Bank deciding the
remuneration and benefits of the employees in accordance with policies determined by the Board. In the year
1999, by virtue of the said amendments in BNA, the Board of Directors of the Bank approved the Revised Pay
Structure for the officers / executives of the Bank with effect from January 01, 1999 vide Circular No. 37/1999,
whereby the basic salary was increased by 110 % to 140% and besides giving multifarious benefits to its
employees, formula for monthly gross pension was revised. However, the amount of gross pension on the basis
of existing Basic Pay and existing formula was protected.
A number of Bank's employees, after attaining the age of superannuation filed Writ Petitions before the Lahore
High Court and the Peshawar High Court, praying for re-calculation of their pensionary benefits and increases in
accordance with the Bank Circular No. 228 (C) dated December 26, 1977 and furthermore, for allowing the
increases in their pension as per the increases allowed by the Federal Government to its employees. This
litigation started in the year 2010 and 2011.
The Peshawar High Court, in terms of judgment dated June 03, 2014, dismissed the petition while observing
that the petition was hit by laches and that the petitioners could not claim the benefits granted to the similarly
placed employees of other institutions who were governed through different Statutes and Service Rules.
The Lahore High Court vide its judgement dated January 15, 2016, allowed the Writ Petitions on the same
matter and the Bank was directed to release the pensionary benefits of the petitioners. The said order was
assailed by the Bank by filing Intra Court Appeals in January 2016 which were dismissed by the Lahore High
Court, Lahore, through its judgement dated January 16, 2017. The Bank assailed the said judgement by filing
appeals in the Supreme Court of Pakistan.
The Honorable Supreme Court of Pakistan after hearing the arguments of both parties, vide its judgement dated
September 25, 2017 upheld the decision of the Division Bench of the Lahore High Court on the contention of
increase in Bank’s employees’ pension, thereby instructing the Bank to give pension benefits to its employees in
the light of Head Office Instruction Circular No. 228 (C) of 1977. Under this Circular, the pension of employees
was to be calculated at 70% of average emoluments upon completion of minimum qualifying service
requirement, besides requiring the Bank to follow subsequent revisions in pension scheme and rates granted by
the Federal Government to civil servants from time to time as well.

The Bank as well as Federal Government filed review petitions against the aforesaid judgment of the Honorable
Supreme Court of Pakistan and also made an application for constitution of larger bench of the Supreme Court
to hear the review petition, which was reportedly accepted by the Chief Justice. However on March 18, 2019,
the matter came up for hearing before a three member Bench instead of a larger bench. As advised by our legal
counsels, the Bank considers that due to conflicting decision of the other bench of the Supreme Court in a case
which, in all material facts and circumstances, is identical to the Bank’s case and various other legal infirmities
in the judgement as highlighted by the Bank in its Review Petition, the Bank has a reasonably strong case on
legal grounds to convince the Supreme Court for review of its decision. The Review Petition is ongoing and is
expected to be listed for hearing soon.
A related matter has also been appealed in the Supreme Court where the petitioners have asked for increases
in pension in accordance with government increases in Pension for Government employees which is pending
adjudication and a favorable outcome is expected.
In case the above matters are decided unfavorably, the Bank estimates based on the actuarial advice that the
financial impact arising from the additional liability would be approximately Rs. 98,700 million excluding any
penal interest / profit payment (if any) due to delayed payment Pension expense for the current year and
onward will also increase by Rs. 13,500 million due to this decision. Based on the opinion of legal counsel, no
provision has been made in these unconsolidated financial statements for the above-mentioned amount as the
Bank is confident about the favorable outcome of the matter.
25.3.4.2 Regularizing the temporary hires / workers deployed by service provider companies under outsourcing
arrangements
The Bank outsourced certain non-core jobs to various service provider companies after entering into contracts
with them. The resources deployed by the service provider companies were their employees and the said
companies have had sole administrative control over these resources. Some of these resources filed writ
petitions before the High Courts and National Industrial Relations Commission (NIRC) seeking to be absorbed
by the Bank in its regular service based on grounds that they were in fact employees of the Bank. Presently,
there are 6 cases on appeal pending at the Supreme Court where these have been clubbed to be heard as one.
The Chief Justice of Pakistan has constituted a larger bench comprising of five Judges being headed by himself
for adjudication. The case is ongoing and is presently adjourned for a date to be fixed. A favorable outcome of
this case is expected.
25.3.4.3 Litigation related to management trainee program
Treatment of Non-MTOs (regular employees) at Par with the MTOs (also appointed in regular cadres) -
Litigation arising out of order dated September 21, 2016 passed by the Supreme Court in our CA No.1644/2013
out of our CPLA No. 805/2013 filed against order dated March 13, 2013 of the Division Bench of Sindh High
Court, Sukkur in CP No. D-417/2010 (the “Decision”).
Mr. Ashfaq Ali and three (3) others filed a CP No. D-417/2010 before the Sindh High Court, Bench at Sukkur
while praying to treat them equally in respect of remunerations with other employees (MTOs) having same
grade, nature of job and qualification.
The Honorable Division Bench at Sukkur, vide order dated March 13, 2013 directed the Bank to ensure equal
treatment to the petitioners with similarly placed employees without any discrimination.
Certain employees filed petitions in the Honorable High Court of Peshawar who also gave its decision in favor of
the petitioners. Review petition filed in the Honorable Supreme Court of Pakistan by the Bank was also
dismissed.

Last year, the Bank entered into out of court settlements which have successfully been executed with many
Non-MTO employees (‘petitioners’) and accordingly compromise agreements (‘the agreement’), offering waiver
of loans, increase in basic salaries and provision of other allowances, were signed with those petitioners who
have withdrawn their cases against the Bank. Simultaneously the Bank continues to make payments to
claimants as per any court orders from time to time.
25.4 Foreign exchange repatriation case
While adjudicating Foreign Exchange repatriation cases of exporter namely: M/S Fateh Textile Mills Limited, the
Foreign Exchange Adjudicating Court of the State Bank of Pakistan has also adjudicated penalty of Rs. 1,020
million, arbitrarily on the Bank. The Bank has filed appeals before the Appellate Board and Constitutional
Petitions in the Honorable High Court of Sindh against the said judgments. The Honorable High Court has
granted relief to the Bank by way of interim orders
As advised by our counsel, NBP has also filed a Constitutional Petition challenging the constitution of the
Appellate Board by the Commission and has obtained restraining order on the ground that the Appellate Board
constituted by the Commission lacks legal merit in the light of Supreme Court ruling. Our counsel, Mr. Rashid
Anwar, Advocate has concluded his arguments in respect of the Foreign Exchange Regulation Appellate Board
constitution. However, another petition filed by another company whereby challenging the constitutionality of the
Competition Act was also tagged with the petitions filed by the banks.
Based on merits of the appeals management is confident that these appeals shall be decided in favor of the
Bank and therefore, no provision has been made against the impugned penalty.
25.5 Compliance and risk matters relating to anti-money laundering at the New York Branch
With close oversight from the Board of Directors and Head Office Senior Management, the New York Branch
completed remedial actions pursuant to the public enforcement actions issued by the New York State
Department of Financial Services and the Federal Reserve Bank. Head Office and the Board will continue to
maintain close oversight of the Branch, which has made significant progress in enhancing its compliance
program. The actions implemented by the Branch and their associated validation by Internal Audit continue to
remain subject to review by its regulators.
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
26 MARK-UP / RETURN / INTEREST EARNED
On:
a) Loans and advances 221,787,037 141,365,310

b) Investments 773,985,390 348,305,015
c) Lendings to financial institutions 27,619,480 12,815,152
d) Balances with banks 1,265,741 824,808
1,024,657,648 503,310,285
27 MARK-UP / RETURN / INTEREST EXPENSED
Deposits 365,117,330 209,597,640

Borrowings 6,988,812 5,116,553
Cost of foreign currency swaps against foreign currency deposits / borrowings 14,293,880 10,026,057
Finance charge on lease liability against right of use assets 810,696 848,592
Securities sold under repurchase agreements 468,699,346 160,894,929
855,910,064 386,483,771

2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
28 FEE AND COMMISSION INCOME
Branch banking customer fees 1,836,285 1,644,009

Consumer finance related fees 537,528 525,249
Card related fees (debit cards) 3,018,522 2,372,961
Credit related fees 355,727 399,736
Investment banking fees 479,928 767,814
Commission on trade 2,431,771 2,120,399
Commission on guarantees 815,499 742,496
Commission on cash management 98,999 53,907
Commission on remittances including home remittances 1,813,156 1,618,971
Commission on bancassurance 227,995 308,736
Commission on government transactions 10,319,641 10,506,945
Others 97,131 90,887
22,032,182 21,152,110
29 GAIN ON SECURITIES - NET
Realised 29.1 4,417,126 1,750,428

Unrealised - held for trading 10.1 (34,939) (1,054,801)
Unrealised - Shortselling 1,873 442,320
4,384,060 1,137,947
29.1 Realised gain on
Federal Government securities 1,289,150 121,098

Shares 3,171,618 1,629,252
Foreign securities (43,642) 78
4,417,126 1,750,428
30 OTHER INCOME
Rent on property 74,695 34,946

Gain on sale of fixed assets - net 250,247 4,441
Postal, SWIFT and other charges recovered / reversed 131,783 48,716
Compensation for delayed delivery of vehicles 1,009 -
Compensation for delayed tax refunds 30.1 1,320,345 1,588,150
Gain on derecognition on right of use assets - 1,690
Tender money 2,307 576
Commission on IPS non-competative bids - 5,599
Gain on closure of subsidiary and branch - 42,933
Others 13,079 10,394
1,793,465 1,737,445
30.1 This represents compensation for delayed refunds determined under Section 171 of Income Tax Ordinance
2001.

2023 2022
Note
----------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
31 OPERATING EXPENSES
Total compensation expenses 31.1 56,391,759 48,824,703
Property expenses
Rent and taxes 1,241,018 1,132,695

Insurance 31.2 59,269 63,756
Utilities cost 2,871,400 2,149,280
Security (including guards) 4,043,661 3,558,476
Repair and maintenance (including janitorial charges) 1,463,325 1,140,487
Depreciation 496,438 457,013
Depreciation on non banking assets 10,045 15,717
Depreciation on Ijarah assets 1,065 53,953
Depreciation on ROUA 1,990,974 2,135,047
12,177,195 10,706,424
Information technology expenses
Software maintenance 2,803,333 1,953,761

Hardware maintenance 137,903 121,056
Amortisation 277,042 323,149
Network charges 892,901 763,928
IT Manage Services 2,611,550 1,576,444
7,302,123 5,095,025
Other operating expenses
Directors' fees and allowances 88,232 25,772

Fees and allowances to Shariah Board 17,123 16,368
Legal and professional charges 2,154,647 1,195,338
Outsourced services costs 31.3 931,924 702,378
Travelling and conveyance 1,896,767 1,273,937
NIFT clearing charges 255,128 218,640
Depreciation 1,380,691 1,453,287
Training and development 108,655 52,574
Postage and courier charges 409,561 306,326
Communication 1,211,017 526,610
Stationery and printing 2,083,204 1,350,561
Marketing, advertisement and publicity 1,153,625 931,103
Donations 31.4 45,104 107,076
Auditors' remuneration 31.5 360,590 242,409
Fixed assets / Non-banking asset deficit - 141,403
Financial charges on leased assets 66,293 64,162
Entertainment 335,999 267,998
Clearing charges, verification and licence fee 565,390 524,546
Brokerage 158,589 110,825
Insurance general 742,120 564,873
Vehicle expenses 257,265 278,756
Deposit premium expense 1,392,861 1,813,582
Repairs and maintenance general 1,374,253 932,677
Others 485,599 372,641
17,474,637 13,473,842
Grand Total 93,345,714 78,099,994

2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
31.1 Total compensation expense
Managerial Remuneration
i) Fixed 16,303,729 15,479,326
ii) Variable
of which;
a) Cash Bonus / Awards etc. 5,479,182 5,129,786
Charge for defined benefit plan 11,918,752 8,354,267
Rent & house maintenance 6,283,545 5,825,886
Utilities 2,667,271 2,112,571
Medical 4,602,916 3,871,937
Conveyance 4,250,732 3,743,225
Club Membership & Subscription 93,718 140,451
Education Allowance 1,818,799 1,443,112
Insurance 462,205 472,023
Honorarium to Staff and Staff Welfare 445,175 262,284
Overtime 45,892 45,255
Special Duty Allowance 3,621 2,408
Washing Allowance 14,208 15,044
Key Allowance 70,501 71,914
Unattractive Area Allowance 68,690 61,969
Leave Encashment 12,021 12,967
Teaching Allowance 10,864 10,590
Incentive on CASA deposits mobilization 35,378 23,739
Meal Allowance 246,262 249,065
Staff Incentive 8,421 -
Liveries 19 62
Inflationary Allowance 648,818 840,224
Saturday Allowances 162,405 149,162
Severe Winter Allowance 54,480 54,659
Hill Allowance 34,530 35,176
ATM Cash Replenish Allowance 20,593 14,977
PhD Allowance 10,098 10,441
Other retirement benefits for international branches 132,036 85,969
Reimbursement of visa fees etc - 13,620
Recruiting expenses - 7,732
Others 486,898 284,862
56,391,759 48,824,703
56,391,759 48,824,703
-
31.2 This includes Rs. 3.422 million (2022: Rs.3.422 million) insurance premium against directors' liability insurance.

31.3 Total cost for the year included in other operating expenses relating to outsourced activities is Rs. 931.9 million
(2022: Rs. 702.4 million). Out of this cost, Rs. 919.4 million (2022: Rs. 693.2 million) pertains to the payment to
companies incorporated in Pakistan and Rs. 12.5 million (2022: Rs. 9.1 million) pertains to payment to
companies incorporated outside Pakistan. Total Cost of outsourced activities for the year given to related parties
is Rs. Nil (2022: Rs. Nil). Outsourcing shall have the same meaning as specified in Annexure-I of BPRD Circular
No. 06 of 2017. The material outsourcing arrangements along with their nature of services are as follows:
Name of Company Nature of Services 2023 2022

---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
HTECH Solutions (Private) Limited Call center management 122,541 81,962
122,541 81,962
During the year, outsourcing services were hired in respect of sales, call centre services, IT support, data entry,
protocol services, collection services, janitorial & cleaning services and lift operator and engineering services.
2023 2022
31.4 Donations include following amounts:
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
Description
Family Educational Services Foundation (FESF) - 17,000

Sanjan Nagar Public Education Trust (SNPET) - 10,000
Layton Rahmatullah Benevolent Trust (LRBT) - 5,000
Thardeep Microfinance Foundation (TMF) - 6,000
Rural Community Development Programs (RCDP) - 4,000
Prime Minister's Flood Relief Fund 2022 - 50,000
Namal Education Foundation (NEF) - 5,197
Ghulam Ishaq Khan Institute of Engineering Sciences and Technology 26,549 9,879
The Citizen Foundation (TCF) 7,255 -
Network of Organizations Working for People with Disabilities Pakistan (NOWPDP) 5,000 -
Women Empowerment Group (WEG) 6,300 -
Total 45,104 107,076
31.4.1 None of the Directors, Sponsor shareholders and Key Management Personnel or their spouse have an interest
in the Donee.
A. F. Ferguson BDO Ebrahim Total Total

& Co. & Co. 2023 2022
31.5 Auditors' remuneration
--------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------
Audit fee 9,152 7,471 16,623 14,942

Review of interim financial statements 3,202 2,614 5,816 5,228
Fee for audit of domestic branches 7,438 6,072 13,510 12,144
19,792 16,157 35,949 32,314
Special certifications 1,391 1,136 2,527 2,272
21,183 17,293 38,476 34,586
Other special certifications and sundry advisory 77,209 4,662 81,871 20,739
Sales Tax 10,581 2,341 12,922 6,124
Out-of-pocket expenses 4,500 4,500 9,000 9,000
113,473 28,796 142,269 70,449
Fee for audit of overseas branches including
- - 218,321 171,960
advisory services and out-of-pocket expenses
113,473 28,796 360,590 242,409

2023 2022
32 OTHER CHARGES Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
Penalties imposed by State Bank of Pakistan 270,073 72,347

Penalties imposed by other regulatory bodies
(Central bank of international branches) 15,867 279
285,940 72,626
33 PROVISIONS AND WRITE OFFS - NET
Provision for diminution in value of investments 10.3 458,787 3,812,519

Provision against loans and advances 11.4 13,386,635 8,059,708
Provision against other assets 16.5.1 239,045 562,955
Provision against contingencies 21.1 384,838 165,423
14,469,305 12,600,607
34 TAXATION
Current
For the year 34.1 53,264,509 31,599,204
Prior years (6,322,999) 3,828,030
46,941,510 35,427,234
Deferred
For the year (5,602,109) (3,100,371)
Prior years 8,073,227 -
2,471,118 (3,100,371)
49,412,628 32,326,863
34.1 Current taxation includes Rs.Nil (2022: Rs. Nil) of overseas branches.
34.2 Relationship between tax expense and accounting profit
Accounting profit before tax 101,253,090 62,737,163
Income tax at statutory rate @ 39% (2022: 39%) 39,488,705 24,467,494

Super tax at statutory rate @ 10% (2022: 10%) 10,125,309 6,273,716
Increase / (decrease) in taxes resulting from:
Inadmissible items 140,111 35,587
Prior year taxation 1,750,228 3,828,030
Impact of change in tax rate (1,716,671) (2,075,075)
Reduced rate on SME / Housing - (87,432)
Others (375,054) (115,457)
Tax charge for current and prior years 49,412,628 32,326,863
34.3 During the year, in relation to Section 99D of the Income Tax Ordinance, 2001, FBR has issued SRO to impose
an additional windfall tax @ 40% on foreign exchange income of the banks for the accounting years 2021 and
2022. The Bank along with other banks has challenged the law and filed a petition in Sindh High Court. Based
on strong grounds, stay order has also been issued to banks. However, the Bank has, as an abundant caution,
recorded a prior year charge of Rs. 1,750 million in these unconsolidated financial statements. Similar cases
have also been filed by other banks in Islamabad & Lahore High Courts wherein stay orders have been granted.
The FBR has challenged the stay orders granted by Sindh, Islamabad and Lahore High Courts in Supreme
Court of Pakistan.

2023 2022
35 BASIC EARNINGS PER SHARE

Profit for the year (Rupees in 000's) 51,840,462 30,410,300
Weighted average number of ordinary shares (Number in 000's) 2,127,513 2,127,513
Basic earnings per share (Rupees) 24.37 14.29
36 DILUTED EARNINGS PER SHARE

Weighted average number of ordinary shares (adjusted
for the effects of all dilutive potential ordinary shares) (Number in 000's) 2,127,513 2,127,513
Diluted earnings per share (Rupees) 24.37 14.29
2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
37 CASH AND CASH EQUIVALENTS
Cash and balances with treasury banks 7 294,992,570 229,910,949
Balances with other banks 8 42,325,051 18,593,800
Call / clean money lendings 9 9,723 9,723
Call borrowings 18 (19,434,142) (25,810,145)
Overdrawn nostro accounts 18 (19,330,975) -
298,562,227 222,704,327
37.1 Reconciliation of movements of liabilities to cash flow used in financing activities:
2023
Lease Unclaimed
Obligation Dividend
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
Balance as at January 1, 2023 8,267,949 181,851
Changes from financing cashflows
Payment of lease obligation / dividend (3,446,309) (7,567)
Total charges from financing activities (3,446,309) (7,567)
Other charges
Renewed lease during the year 2,239,854 -
Interest unwinding 810,696 -
Foreign exchange gain 392,592 -
Total other charges 3,443,142 -
Balance as at December 31, 2023 8,264,782 174,284
2022
Lease Unclaimed
Obligation Dividend
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
Payment of lease obligation / dividend (2,428,160) (146)
Total charges from financing activities (2,428,160) (146)
Other charges
Foreign exchange loss (291,112) -

2023 2022
-------------------------------------------------------------------------------------------------------------------------------------------------(Numbers)-----------------------------------
38 STAFF STRENGTH
Permanent 9,542 10,018

On Bank contract 5,420 5,094
Bank's own staff strength at the end of the year 14,962 15,112
38.1 In addition to the above, 1,722 (2022: 1,218) employees of outsourcing services companies were assigned to
the Bank as at the end of the year to perform services other than guarding and janitorial services. Out of these,
1,708 employees are working domestically (2022: 1,211) and 14 (2022: 7) abroad respectively.
39 DEFINED BENEFIT PLAN
39.1 General description
General description of the type of defined benefit plan and accounting policy for remeasurements of the net
defined liability / asset is disclosed in note 5.13 to the unconsolidated financial statements.
39.2 Number of employees under the scheme
The number of employees covered under the following defined benefit schemes are:
2023 2022
-------------------------------------------------------------------------------------------------------------------------------------------------(Numbers)-----------------------------------
Pension fund 9,542 10,018

Post retirement medical scheme 9,542 10,018
Benevolent scheme 9,542 10,018
Gratuity scheme 5,185 4,855
Compensated absences 9,542 10,018
39.3 Principal actuarial assumptions
The actuarial valuations were carried out as at December 31, 2023 using the following significant assumptions:
2023 2022
-----------------------------------------------------------------------------------------------------------------------------------------(Per annum)----------------------------------------
Discount rate 15.50% 14.50%

Expected rate of return on plan assets 15.50% 14.50%
Expected rate of salary increase 15.50% 14.50%
Expected rate of increase in pension 80% for next one 53% for next one
year, 11% onwards year, 10% onwards
Expected rate of increase in medical benefit 15.50% 14.50%

2023 2022
Post retirement Post retirement

Benevolent Gratuity Compensated Benevolent Gratuity Compensated
Pension fund medical Total Pension fund medical Total
scheme scheme absences scheme scheme absences
scheme scheme
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------------------------------------------------------------------------------------------------------------------------------
39.4 Reconciliation of (receivable from) / payable
to defined benefit plans
Present value of obligations 103,591,193 34,833,112 1,613,699 4,575,660 9,632,176 154,245,840 89,128,297 29,176,898 1,697,838 3,767,858 8,734,235 132,505,126
Fair value of plan assets (80,646,300) - - - - (80,646,300) (66,064,403) - - - - (66,064,403)
Payable 22,944,893 34,833,112 1,613,699 4,575,660 9,632,176 73,599,540 23,063,894 29,176,898 1,697,838 3,767,858 8,734,235 66,440,723
- - - - - -
39.5 Movement in defined benefit obligations
Obligations at the beginning of the year 89,128,297 29,176,898 1,697,838 3,767,858 8,734,235 132,505,126 79,608,695 24,516,717 1,778,825 3,168,258 9,952,554 119,025,049
Current service cost 1,082,972 771,209 42,912 543,697 12,352 2,453,142 1,034,974 856,635 63,621 473,120 11,299 2,439,649
ANNUAL REPORT 2023

Past Service due to early retirement gratuity 28,590 14,663 503 136,889 613,761 794,406 1,119,100 441,385 - - - 1,560,485
Other payments 137,070 - - - - 137,070 - - - - - -
Adjustment against contingency Reserve 158,428 34,152 332 - 19,326 212,238 240,914 52,731 328 - 31,837 325,810
Interest cost 12,665,122 4,137,561 232,065 536,448 1,247,384 18,818,580 9,162,030 2,808,493 196,854 364,696 1,149,972 13,682,045
Benefits paid by the Bank (3,565,262) (1,283,994) (194,781) (136,429) (263,173) (5,443,639) (3,267,938) (1,229,299) (206,937) (128,928) (331,125) (5,164,227)
Re-measurement (gain) / loss - Profit and loss - - - - (731,709) (731,709) - - - - (2,080,302) (2,080,302)
Re-measurement loss / (gain) - OCI 3,955,976 1,982,623 (165,170) (272,803) - 5,500,626 1,230,522 1,730,236 (134,853) (109,288) - 2,716,617
Obligations at the end of the year 103,591,193 34,833,112 1,613,699 4,575,660 9,632,176 154,245,840 89,128,297 29,176,898 1,697,838 3,767,858 8,734,235 132,505,126
39.6 Movement in fair value of plan assets
Fair value at the beginning of the year 66,064,403 - - - - 66,064,403 61,773,750 - - - - 61,773,750
Interest income on plan assets 9,552,737 - - - - 9,552,737 7,247,610 - - - - 7,247,610
Contribution by the Bank - net 1,403,168 - - - - 1,403,168 1,345,187 - - - - 1,345,187
Benefits paid (3,565,262) - - - - (3,565,262) (3,267,938) - - - - (3,267,938)
Benefits paid on behalf of fund 1,795,181 - - - - 1,795,181 1,738,818 - - - - 1,738,818
Actuarial loss on Assets 5,396,073 - - - - 5,396,073 (2,773,024) - - - - (2,773,024)
Fair value at the end of the year 80,646,300 - - - - 80,646,300 66,064,403 - - - - 66,064,403
Movement in (receivable) / payable under defined benefits scheme

Opening balance 23,063,894 29,176,898 1,697,838 3,767,858 8,734,235 66,440,723 17,834,945 24,516,717 1,778,825 3,168,258 9,952,554 57,251,299
Charge / (reversal) for the year 4,361,017 4,908,770 274,977 1,080,145 528,027 11,152,936 2,949,394 3,665,128 260,475 837,816 (919,031) 6,793,782
Past Service due to early retirement gratuity - 14,663 503 136,889 613,761 765,816 1,119,100 441,385 - - - 1,560,485
Adjustment against contingency Reserve 158,428 34,152 332 - 19,326 212,238 240,914 52,731 328 - 31,837 325,810
Contribution by the bank - net (1,403,168) - - - - (1,403,168) (1,345,187) - - - - (1,345,187)
Re-measurement loss / (gain) recognised in OCI during the year (1,440,097) 1,982,623 (165,170) (272,803) - 104,553 4,003,546 1,730,236 (134,853) (109,288) - 5,489,641
22,944,893 34,833,112 1,613,699 4,575,660 9,632,176 73,599,540 23,063,894 29,176,898 1,697,838 3,767,858 8,734,235 66,440,723
39.7 Charge for defined benefit plans
39.7.1 Cost recognised in profit and loss
Other payments 137,070 - - - - 137,070 - - - - - -
Actuarial loss / (gain) recognized - Profit and Loss - - - - (731,709) (731,709) - - - - (2,080,302) (2,080,302)
Net interest on defined benefit asset / liability 3,112,385 4,137,561 232,065 536,448 1,247,384 9,265,843 1,914,420 2,808,493 196,854 364,696 1,149,972 6,434,435
4,361,017 4,923,433 275,480 1,217,034 1,141,788 11,918,752 4,068,494 4,106,513 260,475 837,816 (919,031) 8,354,267
39.7.2 Re-measurements recognised in OCI during the year
Loss / (gain) on obligation

- Financial assumptions 6,789,410 1,411,977 (82,933) (19,843) - 8,098,611 4,049,273 1,259,537 (278,861) 45,522 - 5,075,471
- Experience adjustment (2,833,434) 570,646 (82,237) (252,960) - (2,597,985) (2,818,751) 470,699 144,008 (154,810) - (2,358,854)
Return on plan assets over interest income (5,396,073) - - - - (5,396,073) 2,773,024 - - - - 2,773,024
205
Total re-measurements recognised in OCI (1,440,097) 1,982,623 (165,170) (272,803) - 104,553 4,003,546 1,730,236 (134,853) (109,288) - 5,489,641
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
39.8 Components of plan assets - Pension fund
Cash and cash equivalents - net 430,000 284,476

Government securities 63,789,305 53,824,866
Shares 7,509,967 5,565,760
Non-Government debt securities 100,000 100,000
Mutual funds 8,817,027 6,289,301
80,646,299 66,064,403
39.8.1 The Funds primarily invests in government securities which do not carry any significant credit risk. These are
subject to interest rate risk based on market movements. Investment in term finance certificates are subject to
credit risk and interest rate risks, while equity securities are subject to price risk. These risks are regularly
monitored by Administrators of the Pension fund.
39.9 Sensitivity analysis
The increase / (decrease) in the present value of defined benefit obligations as a result of change in each
assumption is summarised as below:
2023
Post
retirement
Pension medical Benevolent Gratuity Compensated
Total
fund scheme scheme scheme absences
-----------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------
1% increase in discount rate (9,103,581) (3,717,246) (77,359) (467,512) (618,856) (13,984,554)

1% decrease in discount rate 10,830,235 4,539,943 85,479 542,519 699,037 16,697,213
1 % increase in expected rate of salary increase 3,739,334 1,112,624 2,138 559,557 736,133 6,149,786
1 % decrease in expected rate of salary increase (3,400,875) (1,008,614) (2,385) (489,081) (661,895) (5,562,850)
1% increase in expected rate of pension increase 7,240,026 1,558,832 - - - 8,798,858
1% decrease in expected rate of pension increase (6,280,959) (1,356,049) - - - (7,637,008)
1% increase in expected rate of medical benefit increase - 1,648,940 - - - 1,648,940
1% decrease in expected rate of medical benefit increase - (1,401,261) - - - (1,401,261)
39.10 Expected contributions to be paid to the fund in the next financial year 1,682,347
39.11 Expected charge for the next financial year 13,774,701

39.12 Maturity profile

The weighted average duration of the obligation
Years
Pension fund 9.50
Post retirement medical scheme 11.87
Benevolent scheme 5.05
Gratuity scheme 11.04
Compensated absences 6.84
39.13 Funding Policy
Pension Fund - Bank's current assets and its percentage is given below;
Amount Percentage
Current Assets Rupees in '000
Cash and cash equivalents - net 430,000 0.5%

Government securities 63,789,305 79.1%
Shares 7,509,967 9.3%
Non-Government debt securities 100,000 0.1%
Mutual funds 8,817,027 10.9%
80,646,299 100%
Bank will continue to invest with the same percentage in the asset categories mentioned but increase the assets
gradually so that there is no deficit in the pension fund.
39.14 Significant risks associated with the staff retirement benefit schemes are as follows:
Asset volatility The risk arises when the future earnings are lower than expectation. This
risk is measured at a plan level over the obligation period of the current
population. The company assets are either invested in fixed securities or
cash.
Changes in bond yields The risk arises when the actual return on plan assets is lower than
expectation.
Inflation risk The most common type of retirement benefit is one where the benefit is
linked with last drawn salary. The risk arises when the actual increases are
higher than expectation and impacts the liability accordingly.
Life expectancy / Withdrawal rate The risk arises when the actual lifetime of retirees is longer than
expectation. This risk is measured at the plan level over the entire retiree
population. The risk of actual withdrawals varying with the actuarial
assumptions can impose a risk to the benefit obligation. The movement of
the liability can go either way.
Investment Risk The risk arises when the actual performance of the investments is lower
than expectation and thus creating a shortfall in the funding objectives.
40. DEFINED CONTRIBUTION PLAN
Provident Fund
The NBP employees Provident Fund was created under National Bank of Pakistan Employees Provident Fund
Rules on April 01, 1950, under the Provident Fund Act, 1925. The Rules have been superseded by revised NBP
Employees’ Provident Fund Rules which came into force on January 01, 1958.
As per rules, the Officers, Executives and Clerical and Non Clerical staff in regular cadre make monthly
contribution of 10% and 12.5% of their basic salary respectively towards the fund and the bank has to pay
interest on balances of member’s provident fund half yearly.
This scheme covers 9,313 employees (2022: 9,737 employees).

41. COMPENSATION OF DIRECTORS AND KEY MANAGEMENT PERSONNEL

41.1 Total Compensation Expense
2023
Directors
Members President / Key Other Material
Items Non- Shariah CEO Management Risk Takers /
Chairman
Executives Board (Note 41.1.1) Personnel Controllers
`
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------
Fees and Allowances etc. 11,786 76,446 11,370 - - -
i) Fixed - - 1,972 9,405 193,791 1,062,350
ii) Total Variable - - - - - -
of which - - - - - -
a) Cash Bonus / Awards - - 809 - 156,328 549,076
Charge for defined benefit plan - - 594 6,915 68,901 503,701
Rent & house maintenance - - 1,085 6,001 106,585 533,924
Utilities - - 394 2,182 38,697 189,209
Medical - - 325 1,800 32,471 210,759
Conveyance - - 444 1,501 37,840 283,510
Others* - - 130 35,136 14,090 221,535
Total 11,786 76,446 17,123 62,940 648,703 3,554,064
Number of Persons 1 **6 5 1 29 287
41.1.1 This represents amount of compensation paid to President in the capacity of Acting President uptill August 6,
2023 as per entitlement of SEVP / Group Chief and also included payment of Gratuity as end service benefit
(Rs. 33.416 million included in Others). Upon receipt of Federal Government Notification # F.1 (9) BKG-III/2022-
1119 dated August 7, 2023, of his appointment as President / CEO of the Bank, the payment of salary as per
entitlement of SEVP / Group Chief was discontinued and Board of Directors in its 352nd meeting dated
September 20, 2023, approved adjustable monthly advance equivalent to the salary and benefits of former
President till approval of his compensation package from the shareholders and an amount of Rs. 22.963 million
has been paid from August 07, 2023 till December 31, 2023 to the President which will be adjusted from his
salary on approval.
* The President and certain executives are also provided with Bank's cars, household equipment, mobile
phones and membership of clubs.
** Mr. Asif Jooma retired on March 08, 2023.
41.1.2 The total amount of deferred bonus as at December 31, 2023 for the Key Management Personnel and other
Material Risk Takers (MRT) / Material Risk Controllers (MRC) is Rs. 233.6 million (2022: Rs. 149.7 million). The
deferred bonus is held in a trust fund.
Performance bonus is accounted for on payment basis
2022
Directors
Members Key Other Material
President /
Items Non- Shariah Management Risk Takers /
Chairman CEO
Executives Board Personnel Controllers
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------------
i) Fixed - - 1,793 28,756 231,791 646,468
of which
Rent & house maintenance - - 986 5,038 106,721 353,830
Utilities - - 305 1,557 32,986 105,025
Medical - - 224 1,145 25,334 111,110
Conveyance - - 408 - 29,957 145,145
Others - - 105 31,151 16,351 140,572
Total 2,705 23,067 16,368 74,592 639,198 2,094,348
Number of Persons 1 6 5 2 23 179

41.2 Remuneration paid to Directors for participation in Board and Committee Meetings
2023
Meeting Fees and Allowances Paid
For Board Committees
Board Board
SN
. o. Name of Director For Board Board Risk & Board HR & Technology
Board Audit Inclusive Total Amount
Meetings Compliance Remuneration & Allowances *
Committee Development Paid
Committee ** Committee Digitalization
Committee Committee
----------------------------------------------------------------------- (Rupees. in '000) -------------------------------------------------------------------
1 Mr. Ashraf Mahmood Wathra 6,720 - - 3,840 - 960 266 11,786
2 Mr. Farid Malik 3,950 2,950 150 3,000 1,350 - 2,171 13,571
3 Mr. Ahsan Ali Chughtai 4,750 3,900 7,000 300 - - 579 16,529
4 Mr. Amjad Mahmood 4,200 3,750 1,200 - 1,750 550 105 11,555
5 Mr. Ali Syed 4,600 3,750 3,750 2,700 1,600 - - 16,400
6 Mr. Nasim Ahmad 4,450 3,600 4,000 - 150 550 4,291 17,041
7 Mr. Asif Jooma*** 600 300 150 300 - - - 1,350
Total Amount Paid 29,270 18,250 16,250 10,140 4,850 2,060 7,412 88,232
* Allowances include accommodation and travel expenses.
** Amount includes NBP - NY Governance Council (Sub-Committee of BRCC).
*** Retired on March 08, 2023.
2022
Board Board
SN
Committee Committee
----------------------------------------------------------------------- (Rs. in '000) -------------------------------------------------------------------
1 Mr. Zubyr Soomro * 900 - - 150 - 300 1,355 2,705
2 Mr. Farid Malik 2,250 750 450 750 600 300 1,158 6,258
3 Mr. Tawfiq Asghar Hussain * 900 450 *** 600 - - - - 1,950
4 Mr. Imam Bukhsh Baloch * 900 450 450 - - - 47 1,847
5 Ms. Sadaffe Abid * 900 - - - 150 450 292 1,792
6 Mr. Asif Jooma 2,250 1,200 450 750 - 600 - 5,250
7 Mr. Ahsan Ali Chughtai 2,250 750 900 600 450 450 570 5,970
(1,367,089)
* Retired on April 16, 2022.
** Allowances include accommodation and travel expenses.
*** Amount includes NBP - NY Governance Council (Sub-Committee of BRCC).
9,527
41.3 Remuneration paid to Shariah Board Members
2023 2022
Items Resident Non-Resident Resident Non-Resident
Chairman Total Chairman Total
Member Member(s) Member Member(s)
----------------------------------------------------------------------- (Rupees. in '000) -------------------------------------------------------------------
Retainer Fee & Fixed Remuneration 4,050 5,753 7,320 17,123 4,050 4,998 7,320 16,368
Total Number of Persons 1 1 3 5 1 1 3 5

42. FAIR VALUE MEASUREMENTS
The fair value of quoted securities other than those classified as held to maturity, is based on quoted market
price. Quoted instruments classified as held to maturity are carried at cost. The fair value of unquoted equity
securities, other than investments in associates and subsidiaries, is determined on the basis of the break-up
value of these investments as per their latest available audited financial statements.
The fair value of unquoted debt securities, fixed-term loans, other assets, other liabilities, fixed-term deposits
and borrowings cannot be calculated with sufficient reliability due to the absence of a current and active market
for these assets and liabilities and reliable data regarding market rates for similar instruments.
42.1 Fair value of financial assets
The Bank measures fair values using the following fair value hierarchy that reflects the significance of the inputs
used in making the measurements:
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are
observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices).
Level 3: Fair value measurements using input for the asset or liability that are not based on observable
market data (i.e. unobservable inputs).
The table below analyses financial instruments measured at the end of the reporting period by the level in the
fair value hierarchy into which the fair value measurement is categorised:
2023
Carrying Value Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------
On balance sheet financial instruments
Financial assets - measured at fair value
Investments
Market Treasury Bills 980,162,978 - 980,162,978 - 980,162,978
Pakistan Investment Bonds 2,915,714,573 - 2,915,714,573 - 2,915,714,573
Ijarah Sukuks 35,128,974 - 35,128,974 - 35,128,974
Foreign currency debt securities 30,733,308 - 30,733,308 - 30,733,308
Ordinary Shares
Listed Companies 62,415,235 62,415,235 - - 62,415,235
Preference Shares
Listed 1,043,797 1,043,797 - - 1,043,797
Term Finance Certificates /
Sukuk Bonds 47,634,990 14,437,490 33,197,500 - 47,634,990

2023
-----------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------
Mutual Fund Units 3,905,304 - 3,905,304 - 3,905,304

Foreign Securities
Equity securities - Listed 42,634,845 42,634,845 - - 42,634,845
Foreign Government debt securities 3,393,550 - 3,393,550 - 3,393,550
4,122,767,554 120,531,367 4,002,236,187 - 4,122,767,554

-
Financial assets - disclosed but not measured
at fair value
Investments
Pakistan Investment Bonds 213,116,482 - 193,881,462 - 193,881,462
Ijarah Sukuks 14,087,500 12,419,631 12,419,631
Foreign Securities
Non-Government Debt Securities 1,083 - 1,083 - 1,083
272,790,034 - 251,841,781 - 251,841,781
4,395,557,588 120,531,367 4,254,077,968 - 4,374,609,335

-
Off-balance sheet financial instruments -
measured at fair value
Foreign exchange contracts purchase and sale 655,935,358 - (6,676,880) - (6,676,880)
Forward government securities transactions 27,318,929 - 3,357 - 3,357
2022
-----------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------
Investments
Ijarah Sukuks 20,178,649 - 20,178,649 - 20,178,649

2022
-----------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------
Ordinary Shares
Preference Shares
Listed 1,091,477 1,091,477 - - 1,091,477
Sukuk Bonds 47,182,336 15,145,954 32,036,382 - 47,182,336
Mutual Fund Units 3,120,431 - 3,120,431 - 3,120,431
Foreign Securities
3,013,825,930 87,740,720 2,926,085,210 - 3,013,825,930
at fair value
Investments
Ijarah Sukuks 13,130,709 12,383,300 - 12,383,300
Foreign Securities
Non-Government Debt Securities 871 - 871 - 871
456,833,859 - 435,745,433 - 435,745,433
3,470,659,789 87,740,720 3,361,830,643 - 3,449,571,363
Off-balance sheet financial instruments -

measured at fair value
Foreign exchange contracts purchase and sale 570,881,591 - (125,371) - (125,371)
Forward government securities transactions 54,568,834 - (14,626) - (14,626)

Valuation techniques used in determination of fair valuation of financial instruments within level 2 and
level 3
Item Valuation approach and input used

Federal Government securities The fair value of Federal Government securities is determined
using the prices / rates available on Mutual Funds Association
of Pakistan (MUFAP) / Reuter page.
Non-Government debt securities The fair value of non-government debt securities is
determined using the prices / rates from MUFAP / Pakistan
Stock Exchange.
Mutual Fund units The fair values of investments in mutual fund units are
determined based on their net asset values as published on
MUFAP.
Ordinary Shares The fair value of Ordinary shares is determined using the
prices from Pakistan Stock Exchange.
Foreign Securities The fair value of foreign securities is determined using the
prices from Reuter page.
Forward foreign exchange contracts and The fair values of forward foreign exchange contracts and
Forward Government securities transactions forward Government securities transactions are determined
using forward pricing calculations.
Fixed assets and non-banking assets acquired Land, buildings and non-banking assets acquired in
in satisfaction of claims satisfaction of claims are revalued on a periodic basis using
professional valuers. The valuation is based on their
assessment of the market value of the assets. The effect of
changes in the unobservable inputs used in the valuations
cannot be determined with certainty. Accordingly, a qualitative
disclosure of sensitivity has not been presented in these
unconsolidated financial statements.
42.2 Fair value of non-financial assets
Information about the fair value hierarchy of Bank’s non-financial assets as at the end of the reporting period are
as follows:
2023
--------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------
Land & building (fixed assets) 51,981,445 - - 51,981,445 51,981,445

Non-banking assets acquired in satisfaction of claims 3,973,126 - - 3,973,126 3,973,126
55,954,571 - - 55,954,571 55,954,571
2022
--------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------

56,117,031 - - 56,117,031 56,117,031
42.3 Certain categories of fixed assets (land and buildings) and non-banking assets acquired in satisfactions of
claims are carried at revalued amounts (level 3 measurement) determined by professional valuers based on
their assessment of the market values.

43 SEGMENT INFORMATION
214
43.1 Segment Details with respect to Business Activities
2023
International,
Inclusive Corporate and Aitemaad and
Retail Banking Financial Head Office /
Development Investment Treasury Islamic Banking Sub total Eliminations Total
Group Institution and Others
Group Banking Group Group
Remittance Group
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------------------------------------------------------------------------------
Profit and loss account

Net mark-up / return / profit (288,653,905) 44,446,578 30,024,021 372,043,914 676,660 11,604,875 (1,394,559) 168,747,584 - 168,747,584
Inter segment revenue - net 426,952,717 (44,570,637) (14,722,482) (394,040,795) - (3,783,783) 30,164,980 - - -
Non mark-up / return / interest income 16,879,805 469,040 5,475,249 15,013,398 948,566 379,522 1,440,885 40,606,465 - 40,606,465
Total income 155,178,617 344,981 20,776,788 (6,983,483) 1,625,226 8,200,614 30,211,306 209,354,049 - 209,354,049
Segment direct expenses 36,682,759 3,763,540 1,353,645 489,431 10,080,124 3,497,535 454,803 56,321,837 - 56,321,837
Inter segment expense allocation - - - - - - 37,309,817 37,309,817 - 37,309,817
Total expenses 36,682,759 3,763,540 1,353,645 489,431 10,080,124 3,497,535 37,764,620 93,631,654 - 93,631,654
Provisions charge / (reversal) (392,545) 1,421,129 13,619,854 1,778,752 (682,121) 1,173,602 (2,449,366) 14,469,305 - 14,469,305
Profit / (loss) before tax 118,888,403 (4,839,688) 5,803,289 (9,251,666) (7,772,777) 3,529,477 (5,103,948) 101,253,090 - 101,253,090
Statement of financial position

Cash and Bank balances 25,780,334 2,327,011 309,620 253,026,662 45,582,613 10,291,381 - 337,317,621 - 337,317,621
Investments - - 29,881,757 4,238,437,789 79,712,923 51,544,718 3,786,856 4,403,364,043 - 4,403,364,043
Net inter segment lending 2,848,709,058 - - - - - 305,771,087 3,154,480,145 (3,154,480,145) -
Lendings to financial institutions - - - 192,430,437 - - - 192,430,437 - 192,430,437
Advances - performing 236,148,640 263,088,116 719,724,952 - 69,139,462 73,125,444 49,633,363 1,410,859,977 - 1,410,859,977
- non-performing 4,151,922 24,855,686 25,215,003 - 64,791,844 1,550,350 100,260,911 220,825,716 - 220,825,716
Provision against advances (8,543,697) (21,077,228) (34,670,159) - (62,606,767) (1,550,875) (105,160,147) (233,608,873) - (233,608,873)
Advances - net 231,756,865 266,866,574 710,269,796 - 71,324,539 73,124,919 44,734,127 1,398,076,820 - 1,398,076,820
Others 45,196,987 4,100,249 37,794,142 117,135,121 8,304,683 5,155,676 103,831,659 321,518,517 - 321,518,517
Total assets 3,151,443,244 273,293,834 778,255,315 4,801,030,009 204,924,758 140,116,694 458,123,729 9,807,187,583 (3,154,480,145) 6,652,707,438
Borrowings - 5,171,334 69,334,637 2,085,073,081 18,164,142 - - 2,177,743,194 - 2,177,743,194

Deposits and other accounts 2,949,740,794 - 510,139,226 - 99,315,779 113,801,806 1,361,774 3,674,359,379 - 3,674,359,379
Net inter segment borrowing - 249,921,195 169,394,086 2,620,973,252 90,971,376 23,220,236 - 3,154,480,145 (3,154,480,145) -
NATIONAL BANK
Others 201,702,450 18,201,305 29,358,657 51,337,805 6,639,026 3,494,868 107,115,161 417,849,272 - 417,849,272
Total liabilities 3,151,443,244 273,293,834 778,226,606 4,757,384,138 215,090,323 140,516,910 108,476,935 9,424,431,990 (3,154,480,145) 6,269,951,845
Equity - - 28,709 43,645,871 (10,165,565) (400,216) 349,646,794 382,755,593 - 382,755,593
Total equity and liabilities 3,151,443,244 273,293,834 778,255,315 4,801,030,009 204,924,758 140,116,694 458,123,729 9,807,187,583 (3,154,480,145) 6,652,707,438
- - - - - - - - - -
Contingencies and commitments - 90,350,773 1,864,882,509 727,686,842 25,102,178 - 27,778,266 2,735,800,568 - 2,735,800,568
PAKISTAN
2022
International,
Inclusive Corporate & Aitemaad &
Retail Banking Financial Head Office /
Remittance
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------------------------------------------------------------------------------
Net mark-up / return / profit (162,183,572) 25,161,999 36,956,951 205,604,613 4,645,932 7,046,951 (406,360) 116,826,514 - 116,826,514
Non mark-up / return / interest income 16,238,007 491,382 4,513,056 11,741,832 1,816,805 475,181 1,407,613 36,683,876 - 36,683,876
Total income 96,733,494 (96,531) 8,803,191 10,620,568 6,462,737 5,590,042 25,396,889 153,510,390 - 153,510,390
ANNUAL REPORT 2023

Segment direct expenses 34,945,405 3,410,975 1,234,244 355,659 7,675,997 3,105,252 406,513 51,134,045 - 51,134,045
Total expenses 34,945,405 3,410,975 1,234,244 355,659 7,675,997 3,105,252 27,445,088 78,172,620 - 78,172,620
Provisions charge / (reversal) 39,252 1,823,824 5,642,750 4,066,055 153,204 187,806 687,716 12,600,607 - 12,600,607
Profit / (loss) before tax 61,748,837 (5,331,330) 1,926,197 6,198,854 (1,366,464) 2,296,984 (2,735,915) 62,737,163 - 62,737,163
- -
Statement of financial position - -
Cash and Bank balances 76,022,158 8,471,928 272,335 116,207,653 41,420,355 6,110,320 - 248,504,749 - 248,504,749
Investments - - 26,566,790 3,338,860,011 55,396,579 53,920,119 2,610,375 3,477,353,874 - 3,477,353,874
Advances - non-performing 4,107,960 21,853,219 24,119,377 - 53,726,670 654,979 100,845,220 205,307,425 - 205,307,425
Provision against Advances (8,972,018) (19,791,641) (23,100,384) - (52,356,953) (655,299) (103,183,105) (208,059,400) - (208,059,400)
Advances - net 217,037,033 238,236,568 609,441,180 - 70,286,002 46,380,995 49,140,026 1,230,521,804 - 1,230,521,804
Others 31,988,215 3,619,415 41,795,925 381,562 6,402,399 2,842,469 165,741,667 252,771,652 - 252,771,652
Total assets 2,238,812,007 250,327,911 678,076,230 3,486,721,693 173,505,335 109,253,903 379,470,298 7,316,167,377 (2,075,742,831) 5,240,424,546
-
Borrowings - 6,032,537 78,399,346 1,839,417,048 16,636,856 - - 1,940,485,787 - 1,940,485,787
Deposits and other accounts 2,089,383,447 - 406,454,898 - 75,916,594 93,591,714 837,707 2,666,184,360 - 2,666,184,360
Others 149,428,560 16,604,132 35,169,167 44,395,276 2,896,990 3,373,890 81,038,625 332,906,640 - 332,906,640
Equity - - 283,293 21,178,677 (18,632,621) 424,444 297,593,966 300,847,759 - 300,847,759
Total equity and liabilities 2,238,812,007 250,327,911 678,076,230 3,486,721,693 173,505,335 109,253,903 379,470,298 7,316,167,377 (2,075,742,831) 5,240,424,546
0 (0) (0) 0 - - -
Contingencies and commitments - 183,082,386 1,907,266,393 625,450,425 28,425,095 - 33,241,948 2,777,466,247 - 2,777,466,247
215
43.2 Segment details with respect to geographical locations
2023
Asia Pacific
United States
Pakistan (including Europe Middle East Total
of America
South Asia)
------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------
Net mark-up / return / profit 168,070,924 (2,358,459) 130,022 1,055,688 1,849,409 168,747,584
Inter segment revenue - net - - - - - -
Non mark-up / return / interest income 39,657,899 230,877 353,114 200,284 164,291 40,606,465
Total income 207,728,823 (2,127,582) 483,136 1,255,972 2,013,700 209,354,049
Segment direct expenses 46,241,714 2,526,822 1,409,334 4,394,781 1,749,186 56,321,837
Inter segment expense allocation 37,309,817 - - - - 37,309,817
Total expenses 83,551,531 2,526,822 1,409,334 4,394,781 1,749,186 93,631,654
Provisions 15,151,429 (148,451) 539 - (534,212) 14,469,305
Profit / (loss) before tax 109,025,863 (4,505,953) (926,737) (3,138,809) 798,726 101,253,090

Cash and Bank balances 291,735,008 24,736,961 10,517,717 8,252,155 2,075,780 337,317,621
Investments 4,323,651,120 43,999,021 - 5,301,911 30,411,991 4,403,364,043
Net inter segment lendings 90,971,180 - - - - 90,971,180
Lendings to financial institutions 192,430,437 - - - - 192,430,437
Advances - performing 1,341,720,515 43,244,999 3 32 25,894,428 1,410,859,977
Advances - non-performing 156,033,871 53,001,981 2,045,768 - 9,744,096 220,825,716
Provision against advances (171,001,908) (52,862,087) (2,045,768) (15,437) (7,683,673) (233,608,873)
Advances - net 1,326,752,478 43,384,893 3 (15,405) 27,954,851 1,398,076,820
Others 313,258,791 4,669,880 130,707 1,726,464 1,732,675 321,518,517
Total assets 6,538,799,014 116,790,755 10,648,427 15,265,125 62,175,297 6,743,678,618
Borrowings 2,159,579,052 8,299,024 - - 9,865,118 2,177,743,194

Deposits and other accounts 3,575,043,600 46,442,386 4,705,117 7,801,287 40,366,989 3,674,359,379
Net inter segment borrowing - 64,906,376 5,733,903 6,298,940 14,031,961 90,971,180
Others 411,255,209 1,442,636 209,407 1,821,640 3,120,380 417,849,272
Total liabilities 6,145,877,861 121,090,422 10,648,427 15,921,867 67,384,448 6,360,923,025
Equity 392,921,153 (4,299,667) - (656,742) (5,209,151) 382,755,593
Total equity and liabilities 6,538,799,014 116,790,755 10,648,427 15,265,125 62,175,297 6,743,678,618
Contingencies and commitments 2,710,698,390 12,116,117 808,936 430,156 11,746,969 2,735,800,568

2022
Asia Pacific United
Pakistan (including Europe States of Middle East Total
South Asia) America
-----------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------
Net mark-up / return / profit 112,180,582 1,674,206 44,424 508,358 2,418,944 116,826,514
Total Income 147,047,653 2,437,760 326,031 830,659 2,868,287 153,510,390
Total expenses 70,496,623 1,920,697 1,083,965 3,420,453 1,250,882 78,172,620
Provisions 12,447,402 (129,353) (306) 2,562 280,302 12,600,607
Profit / (loss) before tax 64,103,628 646,416 (757,628) (2,592,356) 1,337,103 62,737,163

Cash and bank balances 207,084,394 16,776,954 12,524,181 9,444,994 2,674,226 248,504,749
Investments 3,421,957,295 35,919,928 - 2,759,589 16,717,062 3,477,353,874
Advances - performing 1,194,699,235 5,207,650 420 561,473 32,805,001 1,233,273,779
Provision against Advances (155,702,446) (44,181,403) (1,584,372) (12,401) (6,578,778) (208,059,400)
Advances - net 1,160,235,803 35,665,073 420 549,072 34,071,436 1,230,521,804
Others 246,369,252 3,817,915 178,130 251,227 2,155,128 252,771,652
Total assets 5,163,626,979 92,179,870 12,702,731 13,004,882 55,617,852 5,337,132,314
Borrowings 1,923,848,931 1,928,779 - - 14,708,077 1,940,485,787

Deposits and other accounts 2,590,267,766 35,927,275 7,941,305 5,574,521 26,473,493 2,666,184,360
Others 330,009,650 964,792 258,408 667,328 1,006,462 332,906,640
Equity 319,500,632 (5,905,915) - (1,679,152) (11,067,806) 300,847,759
Total equity and liabilities 5,163,626,979 92,179,870 12,702,731 13,004,882 55,617,852 5,337,132,314
(0) 0 0 (0) 0 0
Contingencies and commitments 2,749,041,154 9,797,537 1,803,538 6,737,008 10,087,010 2,777,466,247
44. TRUST ACTIVITIES

44.1 Endowment Fund
Students Loan Scheme was launched by Government of Pakistan in collaboration with major commercial banks
with a view to extend financial help by way of mark-up free loan to the meritorious students without sufficient
resources for pursuing scientific technical and professional education within Pakistan.
The Scheme is being administered by a high powered committee headed by the Deputy Governor, State Bank
of Pakistan and the Presidents of NBP, HBL, UBL, MCB, ABL and the Deputy Secretary, Ministry of Finance as
member and Senior Director of IH&SME Finance Department (Infrastructure, Housing & SME Finance
Department) as a secretary of the Committee. The State Bank of Pakistan has assigned National Bank of
Pakistan to operate the scheme.
The Committee in its meeting held on August 7, 2001 approved creation of Endowment Fund initially at an
amount of Rs. 500 million, Rs. 396 million were transferred from the old Qarz-e-Hasna (Defunct) Fund, Rs. 50
million contributed by the Government of Pakistan and Rs. 54 million were contributed by participating banks
(HBL, NBP and UBL 25% each, MCB 17.5% and ABL 7.5%).
The amount of the Endowment Funds in investments stands at Rs. 936.8 million as at December 31, 2023
(2022: Rs. 875.2 million).

44.2 The Bank undertakes Trustee and other fiduciary activities that result in the holding or placing of assets on
behalf of individuals and other organisations. These are not assets of the Bank and, therefore, are not included
as such in these unconsolidated financial statements. Assets held under trust are shown in the table below:

Securities Held (Face Value)
No. of IPS Market Pakistan Government
Category Total
Accounts Treasury Bills Investment Bonds Ijarah Sukuks
-------------------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------
Assets Management Companies 48 - - - -
Charitable institutions 6 - - - -
Companies 42 203,783,170 59,782,300 24,417,400 287,982,870
Employee Funds 47 55,528,855 429,482,600 - 485,011,455
Individuals 2,317 3,008,590 63,200 - 3,071,790
Insurance Companies 8 49,300,000 172,939,300 - 222,239,300
Others 97 164,055,135 544,853,930 708,909,065
Total 2,565 475,675,750 1,207,121,330 24,417,400 1,707,214,480

No. of IPS Market Pakistan Government
Category Total
Accounts Treasury Bills Investment Bonds Ijarah Sukuks
-------------------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------
Assets Management companies 48 - - - -
Companies 33 111,150,080 53,771,500 27,417,400 192,338,980
Employee Funds 42 76,006,000 67,408,800 - 143,414,800
Individuals 1,680 723,040 63,000 - 786,040
Others 79 198,320,900 672,294,130 - 870,615,030
Total 1,896 415,050,020 954,364,230 27,417,400 1,396,831,650
45. RELATED PARTY TRANSACTIONS
The Bank has related party transactions with its subsidiaries, associates, joint ventures, employee benefit plans
and its directors and Key Management Personnel. The details of investment in subsidiaries, joint venture and
associated undertaking and their provisions are stated in note 10 of the unconsolidated financial statements of
the Bank.
The Bank enters into transactions with related parties in the ordinary course of business and on substantially
the same terms as for comparable transactions with person of similar standing. Contributions to and accruals in
respect of staff retirement benefits and other benefit plans are made in accordance with the actuarial valuations
/ terms of the contribution plan. Remuneration to the executives / officers is determined in accordance with the
terms of their appointment.
Details of transactions with related parties during the year, other than those which have been disclosed
elsewhere in these unconsolidated financial statements are as follows:

2023 2022
Pension Pension Pension
Key Pension Other Key Pension Pension Other
Joint fund fund Provident Joint fund Provident
Directors management Subsidiaries Associates fund related Directors management Subsidiaries Associates fund fund (fixed related
venture (fixed (N.I.D.A fund venture (N.I.D.A fund
personnel (current) parties personnel (current) deposit) parties
deposit) A/c) A/c)
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Balances with other banks
In current accounts - - - - 425,938 - - - - - - - - - 395,137 - - - - -

- - - - 425,938 - - - - - - - - - 395,137 - - - - -
Investments
Opening balance - - - - - - - - - 6,512,634 - - - - - - - - - 4,465,809
Investment made during the year - - - - - - - - - 100 - - - - - - - - - 2,046,825
Investment redeemed / disposed - - - - - - - - - (441,021) - - - - - - - - - -
off during the year
Transfer in / (out) - net - - - - - - - - - (1,150,536) - - - - - - - - - -
Closing balance - - - - - - - - - 4,921,177 - - - - - - - - - 6,512,634
ANNUAL REPORT 2023

Provision for diminution in value - - - - - - - - - 164,975 - - - - - - - - - 461,354
of investments
Advances
Opening balance - 339,734 227,063 2,665,220 - - - - - 2,085,795 - 347,592 426,565 2,934,162 - - - - - 641,482
Addition during the year - 24,777 764,000 - - - - - - - - 86,147 - - - - - - - 2,229,175
Repaid during the year - (58,217) (674,000) (124,767) - - - - - (520,649) - (52,240) (199,502) (268,942) - - - - - (1,435,378)
Transfer in / (out) - net - (40,506) - - - - - - - (1,565,146) - (41,765) - - - - - - - 650,516
Closing balance - 265,788 317,063 2,540,453 - - - - - - - 339,734 227,063 2,665,220 - - - - - 2,085,795
Provision held against advances - - 217,063 2,540,453 - - - - - - - - 217,063 2,665,220 - - - - - -
Other Assets
Interest / mark-up accrued - - 135,050 1,313,344 - - - - - - - - 82,502 1,717,167 - - - - - -
Comission paid in advance 35,846
Rent recievable - - 73,280 - - - - - - - - - 73,280 - - - - - - -
- - 208,330 1,313,344 35,846 - - - - - - - 155,782 1,717,167 - - - - - -
Provision against other assets - - 73,280 - - - - - - - - - 73,280 - - - - - - -

Borrowings
Opening balance - - - - 52,245 - - - - - - - - - 35,741 - - - - -
Borrowings during the year - - - - 493,964 - - - - - - - - - 16,504 - - - - -
Settled during the year - - - - - - - - - - - - - - - - - - - -
Closing balance - - - - 546,209 - - - - - - - - - 52,245 - - - - -
Deposits and other accounts

Opening balance - 98,488 911,103 3,000 - 27,222 - 257,252 13,263,170 515,559 1,760 131,454 1,007,337 - - 86,264 10,100,000 46,769 12,854,755 43,336,142
Received during the year 11,733 991,165 455,593 145,790 - 62,751,350 - 3,883,069 5,369,545 123,529,442 - 885,658 14,507 3,000 - 41,951,279 - 8,370,003 5,025,151 5,647,309
Withdrawn during the year (8,103) (996,174) (117,231) (3,000) (1,450) (62,778,472) - (3,761,343) (5,069,628) (118,318,327) (14) (894,821) (110,741) - - (42,010,321) (10,100,000) (8,159,520) (4,616,736) (5,669,604)
* Transfer in / (out) - net - (20,678) - - 1,821 - - - - 3,518,458 (1,746) (23,803) - - - - - - - (42,798,288)
Closing balance 3,630 72,801 1,249,465 145,790 371 100 - 378,978 13,563,087 9,245,132 - 98,488 911,103 3,000 - 27,222 - 257,252 13,263,170 515,559
(287,593)
Other Liabilities
Interest / mark-up payable - - 86,088 5,892 - - - - - - - - 29,537 - - - - - - -
Brokerage payable - - 5,067 - - - - - - - - - 1,139 - - - - - - -
- - 91,155 5,892 - - - - - - - - 30,676 - - - - - - -
Contingencies and Commitments

- - - - - - - - - - - - - - - - - - - -
* Transfer in / (out) - net due to retirement / appointment of directors and changes in key management executives.
219
2023 2022
220
Key Other Key manage-
Joint Pension Provident Provident Other related
Directors management Subsidiaries Associates related Directors ment Subsidiaries Associates Joint venture Pension fund
venture fund fund fund parties
personnel parties personnel
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------------------------------------------------------------------------------------------
Income
Mark-up / return / interest earned - - 1,928 - - - - 422,679 - - 2,483 3,384 1 - - 457,362
Dividend income - - 186,300 - - - - 144,720 - - 64,260 - 114,405 - - 86,114
Rent income / Lighting & Power and Bank charges - - 21,399 6,077 - - - 21,027 - - 13,903 5,533 - - - -
Expense
Mark-up / return / interest paid 292 7,496 162,076 108,007 31,505 150,743 1,844,455 297,705 - 4,846 37,931 - 20,556 477,113 1,787,633 1,683,174
Finance charges paid on lease assets to subsidiary - - - - - - - - - - - - - - - -
Expenses paid to company in which Director of the bank is interested

as CEO and director - - - - - - - 598,462 - - - - - - - 79,487
Remuneration to key management executives including charge for
defined benefit plan - 711,643 - - - - - - - 713,790 - - - - - -
Contribution for other corporate & social responsibility paid to
company inwhich Directors of the bank is interested as director - - - - - - - - - - - - - - - 5,000
Commission paid to subsidiaries - - 11,182 - - - - - - - 5,535 - - - - -
Directors fee & other allowances 88,232 - - - - - - - 25,772 - - - - - - -
Post Retirement Benefit paid to Director cum Ex-employee - - - - - - - - - - - - - - - 522
45.1 Transactions with Government-related entities
The Federal Government and Pakistan Sovereign Wealth Fund (PSWF) holds 75.60% (2022: Federal Government and SBP 75.60%) shares of the Bank and
therefore entities which are owned and / or controlled by the Federal Government, or where the Federal Government may exercise significant influence, are
related parties of the Bank.
The Bank in the ordinary course of business enters into transaction with Government–related entities. Such transactions include lending to, deposits from and
provision of other banking service to Government–related entities.
The Bank also earned commission on handling treasury transactions on behalf of the Government of Pakistan amounting to Rs. 10,320 million (2022: 10,507
NATIONAL BANK
million) for the year ended December 31, 2023. As at the statement of financial position date the loans and advances, deposits and contingencies relating to
Government–related entities amounted to Rs. 602,707 million (2022: 593,486 million), Rs. 1,622,331 million (2022: 1,403,331 million) and Rs.1,780,517 million
(2022: 1,714,807 million) ,respectively and income earned on advances and investment and profit paid on deposits amounted to Rs. 77,719 million (2022: 40,225
million) and Rs. 184,042 million (2022: 199,052 million) respectively.
PAKISTAN
46. CAPITAL ADEQUACY, LEVERAGE RATIO & LIQUIDITY REQUIREMENTS
The Bank's objectives when managing capital, which is a broader concept than the 'equity' on the face of the
statement of financial position, are:
- to comply with the capital requirements set by the regulators of the banking markets where the Bank
operates;
- to safeguard the Bank's ability to continue as a going concern so that it can continue to provide returns for
shareholders and benefits for other stakeholders; and
- to maintain a strong capital base to support the development of its business.
The SBP has issued instructions for Basel-III Implementation vide BPRD Circular No. 06 of 2013 dated August
15, 2013. These instructions were effective from December 31, 2013 in a phased manner with full
implementation intended by December 31, 2019.
Basel-III instructions comprise the following three capital standards:
i. Minimum Capital Requirement (MCR):
The MCR standard sets the nominal amount of capital banks / DFIs are required to hold. Currently, the
MCR for banks and DFIs is Rs. 10 billion as prescribed by SBP.
ii. Capital Adequacy Ratio (CAR):
The Capital Adequacy Ratio (CAR) assesses the capital requirement based on the risks faced by the
banks/ DFIs. The banks/ DFIs are required to comply with the minimum requirements as specified by the
SBP on standalone as well as consolidated basis. Currently the required CAR for banks is 11.50% (plus
2.50% for NBP as D-SIB requirement).
iii. Leverage Ratio:
Tier-1 Leverage Ratio of 3% is introduced in response to Basel III Accord as the third capital standard.
Bank level disclosure of the leverage ratio and its components has started from December 31, 2015.
However, SBP vide its letter No. BPRD/BA&CPD/638/436708/2023 dated March 7, 2023 has reduced the
minimum requirement to 2.5% up till March 2024 which was 3% as per BPRD circular No.6 dated August
15, 2013. The bank has a leverage ratio of 3.12% in the year ended December 31, 2023, (2022: 3.08%)
and Tier-1 capital of Rs.283,307 Millions (2022: 231,191).
The SBP's regulatory capital as managed by the Bank is analysed into following tiers:
1. Tier 1 Capital (going-concern capital)
• Common Equity Tier 1
• Additional Tier 1
- Tier I capital, which comprises highest quality capital element and includes fully paid up capital, balance in
share premium account, reserve for issue of bonus shares, general reserves and un-appropriated profits
(net of accumulated losses, if any).
2. Tier 2 Capital (gone-concern capital)
- Tier II capital, which includes general reserve for loan losses, revaluation reserve, exchange translation
reserve and subordinated debt.
Basel III capital rules require bank to make certain deductions from the capital before arriving at the Capital
Adequacy Ratio (CAR).
Risk weighted assets are measured according to the nature and reflect an estimate of credit, market and other
risks associated with each asset and counterparty, taking into account any eligible collateral or guarantees. A
similar treatment is adopted for off-balance sheet exposures, with some adjustments to reflect more contingent
nature of potential losses.

The Bank's policy is to maintain strong capital base so as to maintain, investor, creditor and market confidence
and to sustain future development of the business. The adequacy of the Bank's capital is monitored using,
among other measures, the rules and ratios established by the SBP. The ratios compare the amount of eligible
capital with the total of risk-weighted assets. The Bank monitors and reports its capital ratio under the SBP
rules, which ultimately determines the regulatory capital, required to be maintained by Banks and DFIs.
The paid-up capital of the Bank for the year ended December 31, 2023 stood at Rs. 21,275 million (2022: Rs.
21,275 million) and is in compliance with the SBP requirement for the said year. In addition the Bank has
maintained minimum Capital Adequacy Ratio (CAR) of 25.47% (2022: 21.59%).
There have been no material changes in the Bank's management of capital during the year.
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
Minimum Capital Requirement (MCR):
Paid-up capital (net of losses) 21,275,131 21,275,131
Capital Adequacy Ratio (CAR):
Eligible Common Equity Tier 1 (CET 1) Capital 283,307,166 231,190,928

Total Eligible Tier 1 Capital 283,307,166 231,190,928
Eligible Tier 2 Capital 93,397,166 75,036,139
Total Eligible Capital (Tier 1 + Tier 2) 376,704,332 306,227,067
Risk Weighted Assets (RWAs):

Credit Risk 1,053,109,530 1,066,232,569
Market Risk 121,288,939 93,557,759
Operational Risk 304,450,738 258,686,736
Total 1,478,849,207 1,418,477,063
Leverage Ratio (LR):

Eligible Tier-1 Capital 283,307,166 231,190,928
Total Exposures 9,074,435,344 7,502,352,873
Leverage Ratio 3.12% 3.08%
Liquidity Coverage Ratio (LCR):

Total High Quality Liquid Assets 1,618,093,446 1,418,328,644
Total Net Cash Outflow 918,191,522 963,197,902
Liquidity Coverage Ratio 176% 147%
Net Stable Funding Ratio (NSFR):

Total Available Stable Funding 3,357,537,770 2,684,457,394
Total Required Stable Funding 1,298,306,326 1,069,401,835
Net Stable Funding Ratio 259% 251%

46.1 The full disclosure on the Capital Adequacy, Leverage Ratio and Liquidity Requirements as per SBP instructions
issued from time to time, is available on NBP's website. The link to the full disclosure is available at
https://www.nbp.com.pk/blsd/
47. RISK MANAGEMENT
Risk management is about understanding and managing the potential for volatility of earnings, loss of access to
reliable deposits and funding and depletion of capital arising from the business activities, whilst pursuing its
strategic objectives. The Bank has in place a well-defined risk management strategy/ policy with clear
objectives and deliverables through multi-pronged risk management processes.
The Bank applies the Basel framework as a cornerstone of the NBP’s risk management framework and capital
strategy. The Bank maintains a strong capital, funding and liquidity position in line with its on-going commitment
to maintain balance sheet strength. The strength of risk profile management of the Bank stands at the following
pillars:
- Identification and assessment of significant material risks.
- Overseeing and managing the risk profile of the Bank within the context of the risk appetite.
- Optimize risk/ return decisions by aligning them to business objective of achieving sustainable optimum
growth.
In order to support Risk Management Group (RMG’s) activities, a strong data management mechanism is also
in place to collect and consolidate exposure wise information for various risk related analysis and reviews. The
mechanism also helps in identification of e-CIB related information, periodic reviews, generation of reports and
highlighting inconsistencies and errors, and issuing instructions to the relevant data entry points for rectification.
Bank is cognizant of importance of Environmental & Social Risk Management (E&SRM). During the period
under review the Bank established a specialised ESG Function placed within the Enterprise Risk Management
Group (EMRG) to oversee Environment & Social Risks (E&S). Going forward, the E&S Wing manage bank’s
E&S risk in accordance with the regulatory requirements.
In addition, Information Security Division (ISD) became an integral part of Risk Management Group to
confronting the emerging risks arises due to the introduction and use of IT based systems.
47.1 Risk Governance Structure
Risk Management Group (RMG) operates as an independent group, i.e. separate from approvals and direct
involvement in day-to-day activities. RMG reports directly to the President with a dotted line reporting to the
Board Risk Committee (BRC). The group is responsible to perform the functions pertaining to development and
oversight of the risk framework, methodologies and other functions assigned from time to time in line with local/
international best practices and under the supervision of SBP’s regulations/ guidelines.
The Bank’s Board is responsible to ensure active oversight over implementation of policies and frameworks so
as to prevent any significant financial loss or reductions in shareholder value that may be suffered by the Bank.
Therefore, it is the responsibility of the Board to ensure that policies and frameworks are in place to recognize
all significant/ material risks to which the Bank is/ may be exposed and that the required human resource,
culture, practices and systems are adequate to address such risks. The Board and its relevant committee, i.e.
BRC and the senior management along with its relevant committees i.e. Credit Committee, Executive Risk
Management Committee (ERMC), ALCO etc. are responsible to ensure formulation and implementation of risk
management framework.

47.2 Risk Management Framework
The Bank implements risk management framework through a ‘Three Lines of Defence’ model which defines
clear responsibilities and accountabilities for various offices and ensures effective & independent oversight and
also that the activities take place as intended. Risk Management Group together with Compliance Group acts
as second line of defense and performs integrated function of oversight and independently challenges the
effectiveness of risk management actions taken by business groups, who are the first line of defense. The risk
management is further strengthened by the third line of defense, where Board Audit & Compliance Committee
and Audit & Inspection Group add value through independent and objective assurance in improving risk
management functions of the Bank.
Following paragraphs introduce Bank’s exposures to material risks associated with its business activities and
explain overall strategies and processes to manage those risks:
47.2.1 Credit Risk
Credit risk is a significant concern for banks due to the inherent nature of their core operations. With the
continuous global economic crises, ongoing digitalization, and recent technological advancements, credit risk
management has gained increased attention. By adopting a proactive approach and effectively managing their
exposure to credit risk, banks not only ensure the sustainability and profitability of their own operations but also
contribute to the stability of the overall financial system and efficient allocation of capital. Credit risk refers to the
likelihood of incurring financial losses when a borrower fails to repay a loan, leading to disruptions in cash flow
and higher costs for debt collection. NBP's lending activities constitute a major source of credit risk for the Bank,
as it engages in various financial activities such as providing loans and advances, committing to lend, assuming
contingent liabilities such as letter of credit and guarantees, and engaging in other on and off-balance sheet
transactions. Under the supervision of the Board and President, the Bank has a dedicated setup headed by the
Chief Risk Officer, who ensures the efficiency of credit risk assessment, measurement, review, and reporting
frameworks.
Smart lending decisions can empower people and businesses to boost the bank’s profitability and strategically
guarding against the risks of extending credit. The effective implementation of structured assessment models,
comprehensive pre-disbursement evaluation tools, and post-disbursement review systems has allowed NBP to
successfully manage credit risk and mitigate losses within acceptable tolerance levels. Our risk management
approach is rooted in a strategic goal to maintain a robust framework, proactively identify and address risks, and
facilitate sustainable business growth. The bank has in place a Risk Appetite Framework and a Credit Risk
Concentration Management Framework to set limits on credit risk exposure in relation to obligors, economic
groups, and industry segments.
Risk Management function consistently conducts ongoing assessments of the credit portfolio. This involves
utilizing portfolio reports and dashboards to discern borrowers and sectors that may be susceptible to the impact
of changes in the local and global business and economic environment. The bank is actively monitoring
delinquency in accounts, financial position of counterparties, prevailing economic situation and other pertinent
information. The bank's credit review mechanism and approval process are meticulously defined and overseen
by senior management. Analyzing counterparties across diverse asset classes, constitutions, and economic
groups involves employing well-established rating models and scorecards, thereby enhancing decision-making
processes.
The bank has actively undertaken the implementation of the IFRS 9 standard, presently in the parallel-run
phase. This standard introduces a novel model for financial assets, mandating the recognition of impairment
charges through the 'Expected Credit Loss' approach, departing from the existing 'Incurred Credit Loss'
approach.

Retail & Program Lending Group, manages the risk side of products governed on a program basis. It caters to
products covered under RBG, IDG and AIBG businesses. Group has been organized on a Credit Cycle
approach that adapts an end to end credit view. It is engaged in areas of Policy & Portfolio Management, MIS &
Analytics, Credit Approvals, Collection & Recovery, Quality Assurance, etc. In addition, it works closely with
other areas including Operational Risk, IT, Finance, HR, etc. Head of Group reports to CRO of the bank and is a
voting member of Management Credit Committee & Enterprise Risk Committee
Credit Administration (CAD) is pivotal in overseeing the post-approval credit procedures, besides encompasses
the establishment of fitting loan terms in accordance with sanctions and adherence to regulatory standards.
CAD assumes a crucial role in post-approval credit management, actively contributing to portfolio expansion
and granting individuals and businesses access to essential funds. Recent heightened managerial focus has
further refined the efficiency of credit administration functions, emphasizing diligent monitoring and risk
mitigation to sustain a robust and healthy portfolio.
Moreover, CAD is actively working to establish an improved mechanism encompassing advanced collateral
management functions, control over limit functions, and effective vendor management. This initiative aims to
address business requirements with a concentrated focus on CAD functions. Once the system is implemented,
it is anticipated to significantly bolster the Bank's position within its peer group, reinforcing its overall strength.
Presently, the Basel Standardized Approach is employed within the Basel Framework to compute the capital
charge for credit risk-weighted assets, utilizing a straightforward method for credit risk mitigation. Furthermore,
stress testing for credit risk is also conducted to assess the potential impacts of scenarios outlined by the
regulator.
Particulars of the bank's significant on-balance sheet and off-balance sheet credit risk in various sectors are
analyzed as follows:
47.2.1.1 Lendings to financial institutions

Credit risk by public / private sector
Gross lendings Non-performing lendings Provision held
2023 2022 2023 2022 2023 2022

------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------------
Public / Government 85,000,000 - - - - -

Private 107,604,587 31,446,617 174,150 174,150 174,150 174,150
192,604,587 31,446,617 174,150 174,150 174,150 174,150

47.2.1.2 Investment in debt securities
Credit risk by industry sector Gross investments Non-performing investments Provision held
2023 2022 2023 2022 2023 2022
---------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------
Cement 245,168 357,668 20,168 20,168 20,168 20,168

Chemical 326,742 326,742 326,742 326,742 326,742 326,742
Construction 2,630,239 2,962,405 1,633,739 1,633,739 1,633,739 1,633,739
Engineering 4,842 4,842 4,842 4,842 4,842 4,842
Fertilizer 1,152,560 1,330,815 1,152,563 1,330,815 1,152,559 1,199,830
Sugar 640,719 655,219 640,719 655,219 640,719 655,219
Textile 725,810 936,767 582,953 651,053 582,953 651,053
Financial 15,119,874 14,920,842 501,012 501,012 501,012 501,012
Electronics and electrical appliances 1,308,738 1,308,738 1,308,738 1,308,738 1,308,738 1,308,738
Glass and Ceramics 11,361 11,361 11,361 11,361 11,361 11,361
Leather and Tenneries 5,288 5,288 5,288 5,288 5,288 5,288
Food and Personal Care Products 11,184 11,184 11,184 11,184 11,184 11,184
Pharmaceuticals 2,413 2,413 2,413 2,413 2,413 2,413
Technology and Communication 8,348 11,072 8,348 11,072 8,348 11,072
Vanaspati and Allied Industries 4,238 4,238 4,238 4,238 4,238 4,238
Oil and Gas Marketing 687 687 687 687 687 687
Cable and Electrical Goods 4,509 4,509 4,509 4,509 4,509 4,509
Automobile Parts and Accessories 1,185 1,185 1,185 1,185 1,185 1,185
Power (electricity), Gas, Water, Sanitary 29,925,996 27,692,257 - - - -
Tobacco 144 144 144 144 144 144
Paper and Board 10,794 10,794 10,794 10,794 10,794 10,794
Jute 7,081 7,081 7,081 7,081 7,081 7,081
Metal Products 590,000 375,000 - - - -
Services 780,515 823,877 - - - -
Telecom - 300,000 - - - -
Miscelleneous 23,606 464,628 23,443 23,447 23,447 23,447
53,542,041 52,529,756 6,262,151 6,525,731 6,262,151 6,394,746
Credit risk by public / private sector Gross investments Non-performing investments Provision held
2023 2022 2023 2022 2023 2022
---------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------
Public / Government 26,694,858 23,536,119 18,862 18,862 18,862 18,862
Private 26,847,183 28,993,637 6,243,289 6,506,869 6,243,289 6,375,884
53,542,041 52,529,756 6,262,151 6,525,731 6,262,151 6,394,746

47.2.1.3 Advances
Credit risk by industry sector Gross advances Non-performing advances Provision held
2023 2022 2023 2022 2023 2022
----------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------------------------
Agriculture, Forestry, Hunting & Fishing 98,624,179 81,429,406 7,981,816 7,362,301 5,858,554 5,713,024
Mining & Quarrying 4,953,424 3,164,044 205,554 184,765 205,554 184,765
Textile 172,772,809 165,106,735 38,746,011 37,829,886 38,590,888 36,395,069
Chemical & Pharmaceuticals 8,726,797 7,461,927 5,608,202 4,439,102 4,858,290 4,394,734
Cement 29,429,909 35,175,010 6,286,205 5,768,647 4,306,468 3,786,389
Sugar 35,723,868 39,101,616 15,237,588 15,300,589 15,237,588 15,300,589
Footwear and Leather garments 2,548,291 2,534,796 1,305,280 1,168,627 1,271,149 1,079,224
Automobile & Transportation Equipment 8,926,304 10,875,288 962,288 921,095 954,395 905,813
Electronics & Electrical Appliances 10,503,866 10,782,697 4,778,714 2,379,854 3,688,323 2,377,270
Construction 23,638,052 24,955,900 10,057,457 9,447,671 9,936,191 9,441,049
Oil & Gas 311,928,714 178,706,498 19,618,900 19,619,278 19,323,280 19,339,190
Power (electricity), Gas, Water, Sanitary 191,933,546 194,522,795 14,882,572 15,156,096 12,709,678 12,981,169
Wholesale and Retail Trade 53,130,430 53,368,839 11,827,052 10,713,337 11,630,991 10,608,043
Transport, Storage and Communication 73,230,722 57,659,125 17,134,803 14,820,738 15,080,210 12,548,074
Financial 2,874,807 14,915,038 340,098 321,443 324,146 313,343
Services 48,455,066 42,006,765 2,260,499 3,104,232 1,571,278 1,812,521
Individuals 210,381,015 203,234,728 6,900,504 6,468,807 4,318,671 4,350,012
Fertilizer 5,496,940 9,096,871 2,730,894 2,861,321 2,690,260 2,822,795
Metal Products 75,901,770 70,882,534 30,959,009 26,476,676 30,871,562 26,473,372
Telecommunication 32,954,455 30,839,889 1,312,494 1,180,028 1,104,242 1,180,028
Public Sector Commodity Operations 127,236,872 96,305,380 718,876 74,198 235,368 74,198
Rice Trading & Processing 44,913,336 35,552,848 4,541,062 4,546,743 4,361,754 4,432,434
Food and Tobacco 22,581,792 20,536,106 9,386,521 7,108,250 7,954,097 6,745,426
Glass and Ceramics 7,089,518 6,626,264 271,493 274,739 271,493 274,739
Paper & Board 3,939,798 3,063,869 576,412 1,177,882 565,726 1,168,683
Engineering 8,845,740 29,549,358 1,508,928 1,637,447 1,370,855 1,482,884
Plastic Products 3,865,916 3,305,648 1,735,045 1,507,205 1,396,225 1,157,387
Media 664,016 916,067 151,334 151,334 151,334 151,334
Flour Mills 4,409,585 2,429,206 555,705 602,291 525,782 570,451
Sports Goods 1,457,410 140,062 34,794 14,688 34,794 14,688
Surgical equipments 981,604 790,887 13,159 13,200 13,159 9,430
Others 3,565,142 3,545,008 2,196,447 2,674,955 2,158,447 2,622,734
1,631,685,693 1,438,581,204 220,825,716 205,307,425 203,570,752 190,710,861
-
Credit risk by public / private sector Gross advances Non-performing advances Provision held
2023 2022 2023 2022 2023 2022
----------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------------------------
Private 986,807,620 939,648,637 219,843,216 204,822,988 203,071,760 190,226,424
1,631,685,693 1,438,581,204 220,825,716 205,307,425 203,570,752 190,710,861
- (0) - -

47.2.1.4 Contingencies and Commitments 2023 2022

---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
Credit risk by industry sector
Agriculture, Forestry, Hunting and Fishing 218,136 504,418
Mining and Quarrying 73,466 426,948
Textile 15,709,777 15,852,803
Chemical and Pharmaceuticals 8,405,999 3,774,815
Cement 5,949,829 3,402,417
Sugar 5,303 93,200
Footwear and Leather garments 51,827 6,262
Automobile and Transportation Equipment 2,423,164 2,712,927
Electronics and Electrical Appliances 3,509,467 2,433,354
Construction 10,408,498 9,005,223
Oil & Gas 59,322,425 67,938,534
Power (electricity), Water, Sanitary 50,934,421 59,726,777
Wholesale and Retail Trade 3,105,839 1,507,306
Transport, Storage and Communication 55,560,127 117,805,517
Financial 856,711,238 836,176,841
Services 1,512,041,370 1,532,587,528
Individuals 228,227 316,559
Fertilizer 4,832,942 3,272,384
Metal Products 23,669,700 21,853,185
Telecommunication 32,082,348 25,204,570
Public Sector Commodity Operations 3,437,431 199,543
Rice processing and Trading 358,732 459,325
Food and Tobacco 2,082,149 460,902
Paper and Board 2,100,963 560,047
Engineering 81,202,951 68,544,006
Plastic Products 246,351 159,060
Sports Goods 6,229 26,713
Surgical equipments 86,235 47,143
Others 532,595 1,430,774
2,735,800,568 2,777,466,247
* Contingent liabilities for the purpose of this note are presented at cost and includes direct credit substitutes,
transaction related contingent liabilities and trade related contingent liabilities.
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees
Credit risk by public / private sector in '000)-------------------------------
Public / Government 1,708,517,452 1,775,401,082
Private 1,027,283,116 1,002,065,165
2,735,800,568 2,777,466,247
47.2.1.5 Concentration of Advances
The bank's top ten (10) exposures on the basis of total (funded and non-funded exposures) aggregated to Rs.
1,959,515 million (2022: Rs. 1,851,158 million) are as following:
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
Funded 441,093,207 306,636,922
Non Funded 1,518,421,637 1,544,521,600
Total Exposure 1,959,514,844 1,851,158,522

The sanctioned limits against these top 10 exposures aggregated to Rs. 2,045,103 million (2022: Rs. 1,899,110
million).
For the purpose of this note, exposure means outstanding funded facilities and utilised non-funded facilities as
at the reporting date.
47.2.1.6 Advances - Province / Region-wise Disbursement & Utilization
2023
Utilization
Disbursements
KPK including AJK including
Province / Region Punjab Sindh Balochistan Islamabad
FATA Gilgit-Baltistan
---------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------------------------------------------
Punjab 488,630,825 487,273,108 111,328 1,246,389 - - -
Sindh 623,940,498 - 622,376,734 1,176,470 - 387,294 -
KPK including FATA 10,821,813 - - 10,821,813 - - -
Balochistan 3,714,956 - - - 3,714,956 - -
Islamabad 118,306,922 - - - - 118,306,922 -
AJK including Gilgit - Baltistan 3,763,094 - - - - - 3,763,094
Total 1,249,178,108 487,273,108 622,488,062 13,244,672 3,714,956 118,694,216 3,763,094
2022
Utilization
Disbursements KPK including AJK including
Province / Region Punjab Sindh Balochistan Islamabad
----------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------------------------------------
Punjab 422,286,297 421,433,044 853,253 - - - -
Sindh 491,891,760 826,000 489,953,056 - 500,000 612,705 -
Balochistan 4,073,074 - - - 4,073,074 - -
Islamabad 129,737,810 - - - - 129,737,810 -
AJK including Gilgit-Baltistan 7,244,799 - - - - - 7,244,799
Total 1,066,693,365 422,259,044 490,806,309 11,459,625 4,573,074 130,350,515 7,244,799
47.2.2 Market Risk
Market Risk is the value of on and off-balance sheet positions of a financial institution that will be adversely
affected by movements in market factors such as interest rates, foreign exchange rates, equity prices, credit
spreads and/ or commodity prices resulting in a loss to earnings and capital.
The Bank’s market risk is managed through Market & Liquidity Risk Management Policy and Manual approved
by the Board. Bank has in-place market risk limits to maintain risk emanating from such market drivers within
the Bank's risk appetite. Under the developed Value-at-Risk (VaR) models and policy framework, VaR limits are
being monitored.
Standardized Approach is used to calculate capital charge for market risk as per Basel framework. Stress
testing for interest rate, equity prices, and exchange rates risks activities is carried out regularly to estimate the
impact on the capital of the Bank and maintain the Bank's capital at appropriate level.
In addition to the regulatory requirements, Bank has devised proprietary market risk stress testing scenarios
which are performed on periodic basis to assess the impact on capital of the Bank for Internal Capital Adequacy
and Assessment Process (ICAAP). Limits/ zones and Management Action Triggers and Management Action
Plans corresponding to Liquidity Ratios, Balance Sheet Duration Gap, Government Securities' PVBP and
Duration have also been developed.

47.2.2.1 Statement of Financial position split by trading and banking books
2023 2022
Banking book Trading book Total Banking book Trading book Total
--------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------------------
Cash and balances with treasury banks 294,992,570 - 294,992,570 229,910,949 - 229,910,949
Balances with other banks 42,325,051 - 42,325,051 18,593,800 - 18,593,800
Lendings to financial institutions 192,430,437 - 192,430,437 31,272,467 - 31,272,467
Investments 4,360,274,395 43,089,648 4,403,364,043 3,393,771,968 83,581,906 3,477,353,874
Advances 1,398,076,820 - 1,398,076,820 1,230,521,804 - 1,230,521,804
Fixed assets 56,974,417 - 56,974,417 57,105,842 - 57,105,842
Intangible assets 1,510,061 - 1,510,061 1,388,947 - 1,388,947
Right of use assets 6,934,471 - 6,934,471 6,708,404 - 6,708,404
Deferred tax asset - - - 22,299,403 - 22,299,403
Other assets 256,099,568 - 256,099,568 165,269,056 - 165,269,056
6,609,617,790 43,089,648 6,652,707,438 5,156,842,640 83,581,906 5,240,424,546
47.2.2.2 Foreign Exchange Risk
Foreign exchange and translation risk arises from the impact of currency movements on the value of the Bank’s
cash flows, profits and losses, and assets and liabilities as a result of participation in global financial markets
and international operations.
In order to manage currency risk exposure the Bank enters into ready, spot, forward and swaps transactions
with the SBP and in the interbank market, financial institutions and corporates. The Bank’s foreign exchange
exposure comprises of forward contracts, purchases of foreign bills, foreign currency cash in hand, balances
with Banks abroad, foreign placements with the SBP and foreign currency assets and liabilities. Foreign
Exchange exposure is managed within the statutory limits, as fixed by the SBP. Appropriate segregation of
duties exists between the front, middle and back office functions.
2023 2022
Foreign Foreign Net foreign Foreign Net foreign
Off-balance Foreign Off-balance
currency currency currency currency currency
sheet items currency assets sheet items
assets liabilities exposure liabilities exposure
-----------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------------------
United States Dollar 407,071,417 526,851,269 149,166,105 29,386,253 211,299,303 370,932,974 141,296,815 (18,336,856)
Great Britain Pound 4,560,991 8,045,545 8,217,517 4,732,962 3,721,821 7,473,268 5,377,060 1,625,613
Japanese Yen 5,270,516 1,265,119 2,990 4,008,387 4,506,162 1,566,256 109,675 3,049,581
Euro 11,881,678 14,678,082 5,639,911 2,843,507 11,856,401 22,030,243 14,029,417 3,855,575
Other currencies 122,811,374 63,651,435 6,779,686 65,939,626 83,196,326 17,305,795 5,066,952 70,957,483
551,595,977 614,491,450 169,806,209 106,910,735 314,580,013 419,308,536 165,879,919 61,151,396
2023 2022
Banking Trading Banking Trading
book book book book
Impact of 1% change in foreign exchange rates
---------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------------------------
- Profit and loss account - 39,378 - 261,830

- Other comprehensive income 1,069,107 - 611,514 -

47.2.2.3 Equity position Risk
Stock trading activities also raise risk which occurs resulting in negative fluctuations of daily stock prices
specifically in those stocks which are held by the Bank, hence, deplete capital. The Bank’s equity position is
managed through limits imposed by regulator for both, overall investment and exposure in single scrip.
Moreover, internal limits are set to possibly manage overall earnings in the form of placing of stop loss, VaR
limits and/ or through diversification within the structure of overall equity position portfolio.
2023 2022
book book book book
-----------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------
Impact of 5% change in equity prices on
- Other comprehensive income 3,912,948 - 2,577,256 -
47.2.2.4 Yield / Interest Rate Risk in the Banking Book (IRRBB)-Basel II Specific
Interest rate risk arises due to adverse movements in yield curve that is being monitored by ALCO with an
objective to possibly limiting the potential adverse impact on the profitability of the Bank, which may result due
to volatility of market interest rates and any mismatch or gaps in the amount of financial assets and financial
liabilities in different maturity time bands. Bank assumes that the sources of IRR are based on following sub-
risks.
- Re-pricing risk; arising from changes to the overall level of interest rates and inherent mismatches in the re-
pricing term of banking book items.
- Yield curve risk; arising from a change in the relative level of interest rates for different tenors and changes
in the slope or shape of the yield curve.
- Basis risk; arising from differences between the actual and expected interest margins on Banking book
items over the implied cost of funds of those items.
2023 2022
book book book book
-----------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------
Impact of 1% change in interest rates on


47.2.2.5Mismatch of Interest Rate Sensitive Assets and Liabilities
232
2023
Effective Exposed to Yield / Interest risk
Non-interest
Yield / Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5
bearing financial
Interest Upto 1 to 3 to 6 Months to 1 to 2 to 3 to 5 to 10 Above instruments
rate Total Month Months Months Year Years Years Years Years 10 Years
On-balance sheet financial instruments
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------------------------------------------------------------------------------------
Assets
Cash and balances with treasury banks 4.0% 294,992,570 47,429,232 - - - - - - - - 247,563,338
Balances with other banks 10.7% 42,325,051 4,009,398 3,376,854 671,770 758,450 - - - - - 33,508,579
Lendings to financial institutions 19.8% 192,430,437 192,420,714 - - - - - - - - 9,723
Investments 19.8% 4,403,364,043 1,213,850,827 1,016,852,727 405,941,151 1,046,346,810 125,302,736 213,257,677 161,244,939 97,933,065 4,827,262 117,806,849
Advances 14.9% 1,398,076,820 398,672,392 400,820,608 197,797,103 64,383,783 23,471,767 41,855,723 44,435,433 58,092,119 60,544,803 108,003,089
Other assets 0.0% 226,424,116 - - - - - - - - - 226,424,116

6,557,613,037 1,856,382,563 1,421,050,189 604,410,024 1,111,489,043 148,774,503 255,113,400 205,680,372 156,025,184 65,372,065 733,315,694
Liabilities
Bills payable 0.0% 68,000,448 - - - - - - - - - 68,000,448
Borrowings 20.7% 2,177,743,194 2,087,823,897 39,830,834 7,640,293 710,905 1,073,314 1,066,201 6,558,534 33,017,995 21,221 -
Deposits and other accounts 12.3% 3,674,359,379 1,755,991,811 164,972,176 205,025,317 211,301,760 20,390,959 8,319,597 16,710,676 2,777,796 - 1,288,869,287
- - - - - - - - - -
Lease liability against right of use assets 9.8% 8,264,782 972 4,534 31,018 160,978 596,179 1,095,456 1,759,513 4,127,708 488,424 -
Other liabilities - 338,025,095 - - - - - - - - - 338,025,095
6,266,392,898 3,843,816,680 204,807,544 212,696,628 212,173,643 22,060,452 10,481,254 25,028,723 39,923,499 509,645 1,694,894,830
On-balance sheet gap 291,220,139 (1,987,434,117) 1,216,242,645 391,713,396 899,315,400 126,714,051 244,632,146 180,651,649 116,101,685 64,862,420 (961,579,136)
Off-balance sheet financial instruments
Documentary credits and short-term trade-related transactions 1,633,847,479 - - - - - - - - - 1,633,847,479

- Forward foreign exchange contracts 169,806,209 60,702,960 87,931,586 21,171,663 - - - - - - -
- Forward government securities transactions (4,332,657) - - - (658) - - (2,908,182) (1,423,817) - -
- Forward lending 44,432,555 - - - - - - - - - 44,432,555
NATIONAL BANK
- fixed assets 1,129,442 - - - - - - - - - 1,129,442
- other commitments - - - - - - - - - - -
Off-balance sheet gap 1,844,883,028 60,702,960 87,931,586 21,171,663 (658) - - (2,908,182) (1,423,817) - 1,679,409,476
Total Yield / Interest Risk Sensitivity Gap (1,926,731,157) 1,304,174,231 412,885,059 899,314,742 126,714,051 244,632,146 177,743,467 114,677,868 64,862,420 717,830,340
PAKISTAN
Cumulative Yield / Interest Risk Sensitivity Gap (1,926,731,157) (622,556,926) (209,671,867) 689,642,875 816,356,926 1,060,989,072 1,238,732,539 1,353,410,407 1,418,272,827 2,136,103,167
2022
Effective Exposed to Yield / Interest risk
Non-interest
Yield / Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5
bearing financial
Interest Upto 1 to 3 to 6 Months to 1 to 2 to 3 to 5 to 10 Above
instruments
rate Total Month Months Months Year Years Years Years Years 10 Years
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------------------------------------------------------------------------
Assets
Lendings to financial institutions 16.2% 31,272,467 31,262,744 - - - - - - - - 9,723
ANNUAL REPORT 2023

Investments 13.2% 3,477,353,874 621,351,086 1,495,013,190 544,869,800 198,775,210 121,415,872 114,581,645 175,991,374 115,774,778 7,150,694 82,430,225
Advances 10.4% 1,230,521,804 324,286,274 280,091,474 173,744,248 165,864,406 25,730,493 43,725,218 66,856,032 53,927,228 31,850,855 64,445,576
Other assets 0.0% 126,996,148 - - - - - - - - - 126,996,148
5,114,649,042 999,484,442 1,776,717,723 719,170,808 365,437,586 147,146,365 158,306,863 242,847,406 169,702,006 39,001,549 496,834,294
Liabilities
Bills payable 0.0% 55,268,019 - - - - - - - - - 55,268,019
Borrowings 15.8% 1,940,485,787 1,386,993,999 481,134,339 24,758,723 4,359,766 3,941,769 4,278,460 12,396,285 22,578,300 44,146 -
Deposits and other accounts 7.9% 2,666,184,360 1,693,194,904 56,331,841 143,645,001 62,752,364 87,857,931 21,560,944 14,583,213 1,997,543 - 584,260,619
Lease liability against right of use assets 10.4% 8,267,949 50 21,308 60,618 179,606 416,971 1,016,832 1,904,041 2,978,296 1,690,227
Other liabilities 0.0% 266,726,818 - - - - - - - - - 266,726,818
4,936,932,933 3,080,188,953 537,487,488 168,464,342 67,291,736 92,216,671 26,856,236 28,883,539 27,554,139 1,734,373 906,255,456

- forward foreign exchange contracts 165,879,918 78,713,612 62,008,252 25,158,054 - - - - - - -
- forward government securities transactions (32,591,580) (32,591,580) - - - - - - - - -
- Forward lending 50,363,949 - - - - - - - - - 50,363,949
- fixed assets 798,234 - - - - - - - - - 798,234
- other commitments - - - - - - - - - - -
Off-balance sheet gap 1,881,086,247 46,122,032 62,008,252 25,158,054 - - - - - - 1,747,797,909
Total Yield / Interest Risk Sensitivity Gap (2,034,582,479) 1,301,238,487 575,864,520 298,145,850 54,929,695 131,450,627 213,963,867 142,147,867 37,267,176 1,338,376,746
Cumulative Yield / Interest Risk Sensitivity Gap (2,034,582,479) (733,343,992) (157,479,473) 140,666,377 195,596,073 327,046,700 541,010,567 683,158,434 720,425,610 2,058,802,356
233
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
47.2.2.6 Reconciliation of Financial Assets & Liabilities with Total Assets & Liabilities
Total Financial Assets as per note 47.2.2.5 6,557,613,037 5,114,649,042

Add: Non-Financial Assets
Fixed Assets 56,974,417 57,105,842
Intangible Assets 1,510,061 1,388,947
Right of Use Assets 6,934,471 6,708,404
Deferred Tax Assets - 22,299,403
Other Assets 29,675,452 38,272,908
95,094,401 125,775,504
Total assets as per statement of financial position 6,652,707,438 5,240,424,546
Total Financial Liabilities as per note 47.2.2.5 6,266,392,898 4,936,932,933

Add: Non-Financial Liabilities
Deferred Tax Liabilities 720,183
Other Liabilities 2,838,764 2,643,854
Total liabilities as per statement of financial position 6,269,951,845 4,939,576,787
47.2.3 Operational Risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or
from external events. This definition includes legal risk but excludes strategic and reputational risks. For
effective implementation, bank has comprehensive Operational Risk Management (ORM) Framework and
procedure documents. These documents provide guidance for setting up operational risk strategy of the Bank,
selection and adoption of risk and loss measurement tools, reporting, and establishment of operational risk
management processes.
Operational risks are a core component of doing business arising from the day-to-day operational activities of
the Bank including launching of new products and services by the bank. Bank realizes that operational risks
cannot be fully mitigated, it therefore, determines an appropriate balance between accepting potential losses
and incurring costs of mitigation.
Further, the Bank has adopted an Operational Risk Management Policy Framework and Operational Risk
Appetite are approved by the Board in-line with Basel framework and Bank's policy, respectively. Furthermore,
Bank has rolled-out Operational Loss Data Collection Mechanism whereby field functionaries and
Groups/Divisions at head office are responsible to report operational losses under their jurisdictions on
immediate basis. Operational loss events are reviewed and appropriate corrective measures are taken on an
ongoing basis. Risk Evaluation exercise is carried out for new products, processes and systems as per the
ORM procedures document of the bank.
The Bank also conducts root cause analysis of major Operational Risk Incidents covering key control lapses
and accordingly suggests recommendations & mitigations. As per Basel regulatory framework, the Bank
calculates capital charge for its operational risk using Basic Indicator Approach. This approach is considered
most suitable in view of the business model of the bank which relies on an extensive network of branches to
offer banking services to its customers.
Moreover, the Bank closely monitored overall bank's operational environment and undertook required actions to
ensure the safety and security of Bank staff, assets and maintenance of service to its customers. The Bank
continued to take measures to ensure maintenance of their service levels and resolved customer complaints to
meet the expectations of its stakeholders.

The Bank's operations stayed highly resilient and the Bank deployed all necessary measures for the health and
safety of its employees to prevent them from any unwarranted situation.
47.2.4 Information Security Risk
Cyber Security is one of our top priority risks. Considering extensive customer base and increasing digital
footprint, mechanism has been devised for up scaling of technology infrastructure and related channels from
information security standpoint. Further, due to evolving cyber threat landscape, the Bank has taken appropriate
actions to monitor and respond to cybersecurity risks and adopted a heightened state of cybersecurity. We are
living in the highly technology dependent environment, where most of the business functions are performed with
information technology for storing, processing and sharing of information. The information “assets” that are
being used to store, process and transmit the information, face various types of threats. If threats get
materialized and are able to exploit the vulnerabilities (weaknesses) present in these information assets, the
confidentiality, integrity and availability of information get compromised. In order to mitigate the risks, certain
controls and countermeasures need to be assessed and implemented. The Bank has devised a governance
mechanism to manage related risks through development of Policies & Frameworks, and deployed security
tools to ensure adequate implementation of internal controls and monitoring of security threats within technology
infrastructure.
As first line of defense, the Business groups have primary responsibility for identifying, measuring, and
controlling the risks within their areas of accountability. Our staff of Information Security Division (ISD) is second
line of defense against any cyber risks. Therefore, the Bank regularly assesses the information security controls
and undertakes employees’ awareness and trainings. The Bank works with its key technology partners to
ensure that potentially vulnerable systems are identified and appropriate fixes & controls are implemented to
secure the systems. The Bank is actively communicating with its customers on interacting with the Bank in a
secure manner through its full suite of channels including online and digital banking.
Over the span of last two years, the Bank has taken various initiatives to uplift the cyber security controls. The
management is cognizant of the fact that cyber security is a top priority risk and the Bank is taking appropriate
steps to monitor and respond to it. The Information Security Division (ISD) has been reorganized in 2022 with
introduction of new technical roles of IS Security Operations & Threat Management, Network & Infrastructure
Security, and Application & Database Security; in addition to the management roles of IS Governance &
Compliance, IS Program Management, and IS Risk Management. The unit (ISD) works under the supervision of
Chief Information Security Officer (CISO). Numerous steps have been taken by the Bank to identify cyber
security weaknesses of systems & infrastructure. Several controls are in place including but not limited to 24/7
SOC, 2FA authentication of VPN connections, Kaspersky EPP and KATA XDR, IBM QRadar SIEM upgrade,
Guardium for Database security, Resilient for IR playbooks etc. in line with the action plan outlined in the Bank's
cyber security management framework. In addition to these, numerous other initiatives and projects are in line
for further enhancement of bank's cyber security for years 2024 and 2025.
47.2.5 Enterprise-wide Risk
In addition to the above mentioned risks, the Bank has a structure to identify other Pillar II material risks on
periodic basis. The source of these reports includes, but not limited to, the Internal Capital Adequacy and
Assessment Process (ICAAP), which takes into account risks over and above those which directly occur as a
result of daily business and operations of the Bank. These risks include Concentration Risk, Interest Rate Risk
in Banking Book (IRRBB), Increase in NPL Categories, Reputational Risk, Strategic Risk, etc.
Moreover, all those brewing risks that are material and arise within the Bank or due to inherent behavior of
country’s market and economic conditions, whether in isolation or in combination are addressed under the
Bank-wide Recovery Plan. These risks are monitored on certain frequency and mitigating actions are taken as
and when deemed necessary.

Bank's Stress-testing framework, comprises of tools, to deliver a timely assessment of the resilience of the
Bank’s capital under stressed conditions to the senior management. It ranges from simple sensitivity analysis to
sophisticated stress testing methods to capture the abnormal movement of market and economic indicators and
to translate such scenarios into projections of Bank’s profitability, liquidity and capital planning.
This framework paves the way to a quantitative, forward-looking assessment of capital adequacy (movement/
level of Capital Adequacy Ratio (CAR) of the Bank) to provide an indication of how much capital might be
needed to absorb any expected and any unforeseen losses. It helps in identifying potential vulnerabilities within
the Bank and assessing solvency by applying plausible/ past adverse scenarios under extreme conditions.
47.2.6 Liquidity Risk
Liquidity risk is the risk of loss to a bank arising from its inability to meet obligations as they fall due or to fund
assets, without incurring unacceptable costs or losses. More simply, liquidity risk is the possibility that a bank
will be unable to meet its financial commitment to a customer, creditor, or investor when due, in a timely and
cost-effective manner.
To mitigate this risk, Bank has arranged diversified funding sources, manages specific assets with liquidity in
mind and monitors liquidity on daily basis. In addition, the Bank maintains statutory deposits with central Banks
inside and outside Pakistan. The purpose of liquidity management is to ensure that there are sufficient cash
flows to meet all of the Bank's liabilities when due, under both normal and stressed conditions without incurring
unacceptable losses, as well as to capitalize on opportunities for business expansion and profitability. This
includes the Bank's ability to meet deposit withdrawals either on demand or at contractual maturity, to repay
borrowings as they mature and to make new loans and investments, as opportunities arise.
Asset and Liability Committee (ALCO) is responsible for ensuring that the Bank has adequate liquidity and
monitors liquidity gaps, to execute this responsibility. Mandatory as well as optional stress testing and ratio
based liquidity assessments are performed to proactively identify and manage liquidity position, needs/
requirements. Bank has various limits/ ratios, triggers and management actions in place to monitor and mitigate
liquidity risk. The Bank calculates and monitors, on regular basis, Basel-III Liquidity standards (includes LCR,
NSFR and LMTs), liquidity ratios as per SBP parameters besides other internal liquidity measures.

47.2.6.1 Maturities of Assets and Liabilities - based on contractual maturity of the assets and liabilities of the Bank
2023
Over 9
Over 1 to 7 Over 7 to 14 Over 14 days Over 1 to 2 Over 2 to 3 Over 3 to 6 Over 6 to 9 Over 1 to 2 Over 2 to 3 Over 3 to 5 Over 5
Total Upto 1 Day months to 1
days days to 1 Month Months Months Months Months years years Years Years
year
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Assets
ANNUAL REPORT 2023

Cash and balances with treasury banks 294,992,570 291,655,620 931,810 - 2,405,140 - - - - - - - - -
Balances with other banks 42,325,051 33,523,864 - 65,010 3,929,103 3,376,854 - 671,770 758,450 - - - - -
Lending to financial institutions 192,430,437 9,723 192,420,714 - - - - - - - - - - -
Investments 4,403,364,043 3,948,387 63,237 4,454,974 491,810 642,639 36,458,908 46,232,793 575,275,570 1,009,545,853 1,304,643,492 489,322,140 649,752,188 282,532,052
Advances 1,398,076,820 308,653,867 12,914,449 29,826,563 81,084,497 104,759,660 56,183,865 127,744,876 57,342,172 41,316,814 74,813,740 65,861,729 153,261,454 284,313,134
Fixed assets 56,974,417 - - - - - - - - 709,153 2,332,578 709,154 1,242,084 51,981,448
Intangible assets 1,510,061 - - - - - - - - 503,354 503,354 503,353 - -
Right of Use Assets 6,934,471 - - - 274 1,017 2,112 26,771 67,685 74,683 458,539 1,022,070 1,370,768 3,910,552
Deferred tax assets - - - - - - - - - - - - - -
Other assets 256,099,568 76,936,551 - - - 53,035,357 53,434,573 33,961,677 6,476,723 6,476,723 22,369,643 757,405 1,136,107 1,514,809
6,652,707,438 714,728,012 206,330,210 34,346,547 87,910,824 161,815,527 146,079,458 208,637,887 639,920,600 1,058,626,580 1,405,121,346 558,175,851 806,762,601 624,251,995
Liabilities
Bills payable 68,000,448 68,000,448 - - - - - - - - - - - -

Borrowings 2,177,743,194 19,330,975 515,918,633 688,152,390 864,421,899 9,640,838 30,189,996 7,640,293 620,036 90,869 1,073,314 1,066,201 6,558,534 33,039,216
Deposits and other accounts 3,674,359,379 2,921,419,139 34,960,358 16,717,829 74,090,370 93,681,799 70,148,129 207,889,752 153,452,035 53,798,779 20,389,267 8,323,449 16,710,676 2,777,797
Liabilities against assets subject 8,264,782 609 - - 363 1,697 2,837 31,018 76,618 84,360 596,179 1,095,456 1,759,513 4,616,132
to right of use assets
Deferred tax liabilities 720,183 - - - - - - - - - - 720,183 -
Other liabilities 340,863,859 204,718,140 1,347,596 1,141,953 1,066,834 6,560,557 6,145,977 36,083,856 2,354,662 2,354,662 26,230,647 10,936,240 21,215,571 20,707,164
6,269,951,845 3,213,469,311 552,226,587 706,012,172 939,579,466 109,884,891 106,486,939 251,644,919 156,503,351 56,328,670 48,289,407 21,421,346 46,964,477 61,140,309
Net assets 382,755,593 (2,498,741,299) (345,896,377) (671,665,625) (851,668,642) 51,930,636 39,592,519 (43,007,032) 483,417,249 1,002,297,910 1,356,831,939 536,754,505 759,798,124 563,111,686
Share capital 21,275,131

Reserves 79,071,471
Unappropriated profit 218,754,398
Surplus on revaluation of assets 63,654,593
382,755,593
237
2022
238
Over 1 to 7 Over 7 to 14 Over 14 days Over 1 to 2 Over 2 to 3 Over 3 to 6 Over 6 to 9 Over 9 months Over 1 to 2 Over 2 to 3 Over 3 to 5 Over 5
Total Upto 1 Day
days days to 1 Month Months Months Months Months to 1 year years years Years Years
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Assets
Balances with other banks 18,593,800 12,404,772 2,036,159 53,880 1,131,200 666,169 946,890 556,760 797,970 - - - - -
Lending to financial institutions 31,272,467 9,723 30,484,537 778,207 - - - - - - - - - -
Investments 3,477,353,874 5,642,931 3,022,008 2,084,677 3,740,930 186,814,863 406,585,250 221,684,778 398,517,150 177,535,218 599,374,146 756,921,831 458,210,559 257,219,533
Advances 1,230,521,804 395,617,066 4,058,283 13,107,471 41,934,580 66,304,945 19,816,294 117,851,616 66,796,248 61,478,106 70,627,513 64,102,093 125,183,386 183,644,203
Fixed assets 57,105,842 - - - - - - - - 767,650 1,847,737 767,649 1,305,721 52,417,085
Intangible assets 1,388,947 - - - - - - - - 462,982 462,982 462,983 - -
Right of Use Assets 6,708,404 - - - 74 16,055 611 58,696 104,470 74,851 374,173 844,718 1,550,294 3,684,462
Deferred tax assets 22,299,403 - - - - - - - - - - - 22,299,403 -
Other assets 165,269,056 40,601,665 - - - 35,063,581 35,453,086 18,014,774 1,555,796 1,555,796 29,927,589 688,171 1,032,256 1,376,342
5,240,424,546 681,905,883 40,498,987 16,024,235 48,190,007 288,865,613 462,802,131 358,166,624 467,771,634 241,874,603 702,614,140 823,787,445 609,581,619 498,341,625
Liabilities
Bills payable 55,268,019 55,268,019 - - - - - - - - - - - -

Borrowings 1,940,485,787 181,510 904,800,208 6,202,665 475,809,616 332,601,654 148,532,685 24,758,723 2,260,017 2,099,748 3,941,769 4,278,460 12,396,285 22,622,447
Liabilities against assets subject
8,267,949 - - - 50 20,865 443 60,618 70,232 109,374 416,971 1,016,832 1,904,041 4,668,523
to right of use assets
Other liabilities 269,370,672 141,944,504 13,465 10,535 31,684 11,407,909 11,393,698 28,281,344 2,106,131 2,106,131 24,159,069 9,893,832 19,220,510 18,801,860
4,939,576,787 2,341,282,171 934,007,772 21,317,934 565,273,993 379,212,219 180,887,687 196,707,645 47,552,435 24,009,704 116,374,282 36,756,524 48,104,049 48,090,372
Net assets 300,847,759 (1,659,376,288) (893,508,785) (5,293,699) (517,083,986) (90,346,606) 281,914,444 161,458,979 420,219,199 217,864,899 586,239,858 787,030,921 561,477,570 450,251,253
NATIONAL BANK
Reserves 64,144,050
300,847,759
PAKISTAN
47.2.6.2 Maturities of assets and liabilities - based on expected maturities of the assets and liabilities of the Bank
2023
Over 1 to 3 Over 3 to 6 Over 6 Months Over 1 to 2 Over 2 to 3 Over 3 to 5 Over 5 to 10 Above 10

Total Upto 1 Month
Months Months to 1 Year Years Years Years Years Years
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------------------------------------------------------------------------------------------------------------
Assets
Cash and balances with treasury banks 294,992,570 186,697,470 4,459,436 51,917,832 51,917,832 - - - - -
ANNUAL REPORT 2023

Balances with other banks 42,325,051 37,517,977 3,376,854 671,770 758,450 - - - - -
Lending to financial institutions 192,430,437 192,430,437 - - - - - - - -
Investments 4,403,364,043 8,958,408 37,101,548 46,232,793 1,584,821,422 1,304,643,492 489,322,140 649,752,188 273,727,499 8,804,553
Advances 1,398,076,820 353,457,485 257,947,258 117,692,500 90,730,630 74,812,630 65,861,729 153,261,454 208,090,803 76,222,331
Fixed assets 56,974,417 - - - 709,154 2,332,578 709,154 1,242,084 - 51,981,447
Intangible assets 1,510,061 - - - 503,354 503,354 503,353 - - -
Right of Use Assets 6,934,471 275 3,128 26,771 142,368 458,539 1,022,070 1,370,768 3,475,902 434,650
Deferred tax assets - - - - - - - - - -
Other assets 256,099,568 173,126,273 23,310,926 20,930,958 12,953,447 22,369,643 757,405 1,136,107 1,514,809 -
6,652,707,438 952,188,325 326,199,150 237,472,624 1,742,536,657 1,405,120,236 558,175,851 806,762,601 486,809,013 137,442,981
Liabilities
Bills payable 68,000,448 43,326,759 644,310 8,009,793 8,009,793 8,009,793 - - - -
Borrowings 2,177,743,194 2,087,823,897 39,830,834 7,640,293 710,905 1,073,314 1,066,201 6,558,534 33,017,995 21,221
Deposits and other accounts 3,674,359,379 756,498,447 212,075,045 641,470,099 655,458,958 473,941,147 461,875,330 470,262,556 2,777,797 -
Liabilities against assets subject to right of use assets 8,264,782 972 4,534 31,018 160,978 596,179 1,095,456 1,759,513 4,127,708 488,424
Deferred tax liabilities 720,183 - - - - - - 720,183 - -
Other liabilities 340,863,859 174,072,935 39,534,742 43,457,236 4,709,324 26,230,647 10,936,240 21,215,571 10,353,582 10,353,582
6,269,951,845 3,061,723,010 292,089,465 700,608,439 669,049,958 509,851,080 474,973,227 500,516,357 50,277,082 10,863,227
Net assets 382,755,593 (2,109,534,685) 34,109,685 (463,135,815) 1,073,486,699 895,269,156 83,202,624 306,246,244 436,531,931 126,579,754

Reserves 79,071,471
Unappropriated profit 218,754,398
Surplus/(Deficit) on revaluation of assets 63,654,593
239
382,755,593
240
2022
Over 1 to 3 Over 3 to 6 Over 6 Months Over 1 to 2 Over 2 to 3 Over 3 to 5 Over 5 to 10 Above 10

Total Upto 1 Month
Months Months to 1 Year Years Years Years Years Years
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------------------------------------------------------------------------------------------------------------
Assets
Cash and balances with treasury banks 229,910,949 151,412,679 3,232,446 36,991,996 36,991,996 1,281,832 - - - -
Lending to financial institutions 31,272,467 31,272,467 - - - - - - - -
Investments 3,477,353,874 25,935,822 646,326,512 220,062,209 574,235,660 593,544,604 741,081,570 419,894,119 245,443,901 10,829,477
Advances 1,230,521,804 386,088,982 171,501,123 110,076,664 119,302,841 70,627,513 64,097,093 125,183,386 119,244,206 64,399,996
Fixed assets 57,105,842 - - - 767,650 1,847,737 767,650 1,305,721 - 52,417,084

Intangible assets 1,388,947 - - - 462,982 462,982 462,983 - - -
Right of Use Assets 6,708,404 74 16,666 58,696 179,321 374,173 844,718 1,550,294 2,488,455 1,196,007
Deferred tax assets 22,299,403 - - - - - - 22,299,403 - -
Other assets 165,269,056 92,127,955 25,970,588 11,034,563 3,111,593 29,927,589 688,171 1,032,256 1,376,341 -
5,240,424,546 702,463,989 848,660,395 378,780,888 735,850,013 698,066,430 807,942,185 571,265,179 368,552,903 128,842,564
Liabilities
Bills payable 55,268,019 29,855,579 1,335,761 863,023 11,606,828 11,606,828 - - - -
Borrowings 1,940,485,787 1,386,993,998 481,134,339 24,758,723 4,359,766 3,941,769 4,278,460 12,396,285 22,578,300 44,147
Liabilities against assets subject to right of use assets 8,267,949 50 21,308 60,618 179,606 416,971 1,016,832 1,904,041 2,978,296 1,690,227
4,939,576,787 1,974,088,630 644,669,909 214,966,425 519,194,646 569,889,484 478,664,898 490,012,423 36,955,068 11,135,304
Net assets 300,847,759 (1,271,624,641) 203,990,486 163,814,463 216,655,367 128,176,946 329,277,287 81,252,756 331,597,835 117,707,260
NATIONAL BANK
Reserves 64,144,050
300,847,759
PAKISTAN
47.2.7 Derivative Risk
A derivative is a contract that derives its value from the performance of an underlying asset which can be an
index, interest rate, commodity price, security price, FX rate etc. Derivatives include forwards, futures, swaps,
options etc. In Pakistan, futures and forwards are most commonly traded derivatives.
Currently, the Bank is not an active participant in the Pakistan derivatives market as it does not hold an
Authorized Derivative Dealer (ADD) license to perform derivative transactions. Once acquired, the Bank will
carry out transactions that are permitted under the Financial Derivatives Business Regulations issued by SBP,
which may include Interest rate swaps, forward rate agreements, foreign currency options, etc.
Moreover, the Bank may also offer other over the counter derivative products to satisfy customer requirements,
specific approval of which will be sought from the SBP on a transaction by transaction basis.
48. GENERAL
48.1 Comparative information has been re-classified, re-arranged or additionally incorporated in these
unconsolidated financial statements, wherever necessary, to facilitate comparison and better presentation. No
significant reclassifications have been made during the current year.
48.2 Figures have been rounded off to the nearest thousand rupees.
49. DATE OF AUTHORISATION FOR ISSUE
The unconsolidated financial statements were authorised for issue on February 22, 2024 by the Board of
Directors of the Bank.

Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31, 2023
242
Rs. In 000
Principal Interest/ Other Total
Name of Individuals/ Outstanding liabilities at beginning of year written-off Mark-up financial (9+10+11)
S. No. Name & Address of the borrower Partners/ Fathers/Husband's name written off relief /
Directors (with CNIC No.) Interest/ waiver
Principal Others Total provided
mark-up
1 2 3 4 5 6 7 8 9 10 11 12
1 Harum Textile Mills Ltd. Ch.Naeem Gulzar Gulzar Muhammad 295,572 44,776 285,583 625,931 - - 285,531 285,531
98 B, New Muslim Town, Lahore 35202-3020481-3
Ch.Mazhar Shakeel Bhatti Anayatullah Bhatti
34603-6324577-9
Mrs.Shakeela Naeem Naeem Gulzar
35202-3263963-8
Mr.Gul Riaz Bhatti Anayatullah Bhatti
34603-3801110-1
Mrs.Rehana Abbas Ghulam Abbas
35202-2463452-8
Mrs.Seerat Zainat Bhatti Mushtaq Haq Nawaz
34603-5410998-9
Mr.Waheed Akhtar Muhammad Iqbal Tahir
34501-2837420-9
2 Adil Textile Mills Ltd. Adil Mehmood Mehmood Saqiq 147,301 52,845 - 200,146 - - 16,936 16,936
156 N, Model Town 35202-2700320-3
Lahore
Nusrat Azhar M. Mustafa
35202-5065994-6
Zulfiqar Haider Allah Ditta

35404-1585958-7
Unconsolidated Financial Statements
Saqib Maqsood Maqsood Ahmad

35200-1497387-5
Shahid Qureshi Ghulam Muhammad

35200-1504083-7 Qureshi
3 Eden Housing Ltd. Muhammad Amjad Ch.Ghulam Hussain 352,393 160,634 152,596 665,623 - - 86,800 86,800
Eden Tower 35202-7697311-7
M 3, 82 -E/1
Main Boulevard Gulberg III Anjum Amjad Muhammad Amjad
Lahore 35202-2228505-4
Syed Mussarat Hussain Syed Najam ul Hassan

Naqvi Naqvi
Annexure ‘I’ as referred to in note 11.6 of the Bank’s
35202-5668485-1
NATIONAL BANK
4 M/s. Tharparkar Sugar Mills Limited (TSML) Syed Imtiaz Ali Shah Ghulam Haider Shah 225,538 91,461 - 316,999 - - 91,461 91,461
44103-2975179-7
Syed Irfan Ali Shah Ghulam Haider Shah

44103-4745570-5
Syed Irshad Ali Shah Mohammad Ali Shah

42501-5421979-9
PAKISTAN
Rs. In 000
mark-up
5 Master Rice Mill, Kheeal Mal Warsi Mal 47,170 2,411 36,777 86,358 - - 23,453 23,453
Near Ansar Sugar Mill, 41207-1069423-9
Moya Road Matli
Leela Ram Warsi Mal
41207-2433189-9
6 M/s Clifton Industry Hafiz Bilal tahir Tahir Mahmood 8,918 - 1,855 10,773 - - 573 573
Shatab Ghara near Railway Crossing , Sialkot 34603-2111701-1
Hassan Tahir
34603-7087782-1
7 Mycal Mycal Sharif Masih 550 - 1 551 550 - 1 551

Kosoky Road,Mohallah West, 34301-3642376-3
ANNUAL REPORT 2023

Christian Colony, Hafizabad
8 Mushtaq Ahmad S/o Nawazish Ali Mushtaq Ahmad Nawazish Ali 701 - 65 766 701 - 65 766
H.No.786, Ward # 8/17, Old Nankana Sahib, Distt: 35402-1931411-7
Nankana Sahib
9 M/s.Jawad and Co Syed Hassan Raza Syed Anwaar Hussain 2,425 3,614 350 6,389 - - 857 857
Ghalla Mandi Gharbi, 34301-7868277-9 Sherazi
Hafizabad
Syed Shabbir Hussain Shah Bahawal Sher
34302-7851864-9
10 Khushal Khan Khushal Khan Muhammad Sharif 561 - - 561 561 - - 561
Goharabad PO Hattain Bala, Tehsil & Distt: 61101-1918367-1
Hattain Bala, AJK
11 Ziauddin S/o Hakim Din Ziauddin Hakim Din 507 - - 507 507 - - 507
Harayyla Gujran PO Ghari Dopatta, 82203-6730841-1
Muzaffarabad AJK
12 Raja Farooque Asghar Raja Farooque Asghar Raja Muhammed Asghar 1,060 - 13 1,073 1,060 - 13 1,073
Ward No. 03, Mohallah Sundgali, Muzaffarabad. 82203-9900372-5

13 Javeed Ahmed Javeed Ahmed Muhammad Alam Khokhar 964 - - 964 964 - - 964
Muhallah Bais Colon, Larkana 43202-0825825-9
14 Nagar Ali Nagar Ali Allah Rakhio Mangnejo 587 - - 587 587 - - 587
Village Wandh Saboo, Kartio Taluka Ratdero, 43205-7523677-1
Distt: Larkana
15 Ghulam Hussain Ghulam Hussain Muhammad Siddique Bhutto 641 - - 641 641 - - 641
Muhallah Hassan Pur Taluka Ratodero, 43205-4716171-7
Distt: Larkana
16 Sharafuddin Jatoi Sharafuddin Jatoi Abdul Qadir Jatoi 968 - - 968 968 - - 968
Airport Road Muhalla Allahabad, 43203-4239556-5
Distt: Larkana
17 Ghulam Ali Ghulam Ali Abdul Rahim Channo 748 - - 748 748 - - 748
Village Baradi Sario, PO Bagi, Distt: Larkana 43201-3788893-1
18 Syed Fazal Shah Syed Fazal Shah Syed Muhammad Ismail 1,029 - - 1,029 1,029 - - 1,029
Madrsa Mohalla Khandhkot Taluka Kandhkot Distt 43103-3985114-5 Shah
Kashmotre
19 Late Abdul Rasheed Late Abdul Rasheed Khan Muhammad 813 - - 813 813 - - 813
Bhatti Muhalla, Old Saddar, Tehsil Garhi Yasin Distt: 43304-7949750-9
Shikarpur
20 Muhammad Adam Muhammad Adam Muhammad Khan Babar 762 - - 762 762 - - 762
New Colony Ward No.01, Taluka Johi 41202-2400875-3
21 Nazir Hussain Nazir Hussain Gul Muhammad Soomro 567 - - 567 567 - - 567
Wadi Wahni, P.O Dokri Khairwah, Taluka Dokri 43201-3205633-7
243
Rs. In 000
244
mark-up
22 Munawar Ali Munawar Ali Sijawal Khan Joyo 501 - - 501 501 - - 501
Muhalla Noorani Badah, Taluka & Distt: Larkana 43201-5820272-3
23 Late Muhammad Ali Late Muhammad Ali Amir Bux 618 - - 618 618 - - 618
Village Bukhshoo Madeji, Tal: Garhi Yasin 43301-8249271-3
24 Irshad Ahmed Irshad Ahmed Muhammad Hassan Dayo 903 - - 903 903 - - 903
Muhalla New Nazar City, Distt: Larkana 43203-1357034-5
25 Mubarak Ali Mubarak Ali Makan Khan Bugti 1,004 - - 1,004 1,004 - - 1,004
Muhallah Ruhal Khan Bugti, Village Metho Dero 43203-2836628-5
26 Amir Bux Amir Bux Hussain Bux 867 - - 867 867 - - 867
Haji Latif Shah Sindh Wah Road, Shikarpur 43304-9699653-3
27 Late Abdul Hameed Late Abdul Hameed Fateh Ali Hajano 568 - - 568 568 - - 568
Village Hajana, Distt: Shikarpur 43304-0595038-1
28 Nazakat Ali Nazakat Ali Faqir Muhammad Khaskheli 852 - - 852 852 - - 852
RO Rangar Muhalla Radhan Station Taluka Mehar 41205-6653333-5
29 QudratUllah QudratUllah Abdul Kareem 611 - - 611 611 - - 611
Village Haji Abdul Karim Jagirani 43103-5595015-9
30 Ghulam Akbar Ghulam Akbar Khawand Dino 959 - - 959 959 - - 959
Street sanch PO Ratodero Taluka Ratodero Distt 43205-8762110-1
Larkana
31 Bhag Chand Bhag Chand Heera Nand 695 - - 695 695 - - 695
Muhalla Maaraj Ramchand Haveli PO ratodero Distt 43205-3665745-9
Larkana
32 Qurban Ali Qurban Ali Muhammed Ishaque Soomro 517 - - 517 517 - - 517
Village Karani talka Dokri 43201-7182377-1
33 Ali Hyder Ali Hyder Muhammed Khan 732 - - 732 732 - - 732
Shaikh Muhalla, Nasirabad 43207-6130872-5
34 Ghulam Sarwar Ghulam Sarwar Piyaro 740 - - 740 740 - - 740
Bus Stand Muhalla, Lakhi 43303-9814115-7
35 Ghulam Rasool Ghulam Rasool Punhoo Khan 636 - - 636 636 - - 636
Village Haji Dhani Bux, Mashori, P.O. Noushoro Feroz 45304-8942645-9
36 Ali Asghar Utho Ali Asghar Utho Muhammad Umar 572 - - 572 572 - - 572
Village Muhammad Khan Utho Taluka Qazi Ahmed 45402-0926307-5
Distt: Shaheed Benazir Abad
37 Muhammad Umer Muhammad Umer AllaUddin 514 - - 514 514 - - 514
H.NO 27-28 Mohalla Fateh Town, Eid Gah Road, 44103-4920760-3
Mirpurkhas
38 Musheer Ahmad Musheer Ahmad Wali Dad 523 - - 523 523 - - 523
Kikri, PO Bahadurpur, Tehsil Sadiqabad, 31304-0683164-7
Distt: Rahimyar Khan
39 Rafaqat Masih S/o Saeed Masih Rafaqat Masih Saeed Masih 504 - - 504 504 - - 504
Street # 3, Abu Al Hasan Colony, 31303-7078874-9
Rahim Yar Khan
40 Shabbir Ahmad Nadeem Shabbir Ahmad Nadeem Fakhar Uddin 562 - 2 564 562 - 2 564
Taj Garh,Tehsil & Disst Rahimyarkhan 31303-2370563-3
41 Muhammad Abdul Mujtaba Muhammad Abdul Mujtaba Muhammed Abdullah 1,032 - - 1,032 1,032 - - 1,032
NATIONAL BANK
H. No. 03, Muhalla Pir Manan, Uchsharif. District 31201-0313186-7
Bahawalpur.
42 Muhammad Tariq Muhammad Tariq Nabi Bakhsh 587 - - 587 587 - - 587
H#533/D Mohalla Munshian Bannu 11101-0631524-1
43 Said Nawaz Khan Said Nawaz Khan Sher Daraz Khan 599 - - 599 599 - - 599
Akhundan Landidak, P.O Miryan, Bannu 11101-5954241-3
44 Nasir Mehmood Nasir Mehmood Ameer Din 820 - - 820 820 - - 820
Mangoke P/o Same Tehsil Nowshera Virkan District 34103-4394533-1
PAKISTAN
Gujranwala
Rs. In 000
mark-up
45 Muhammad Akram Muhammad Akram Ali Hassan 962 - - 962 962 - - 962
St: 06 Barkat Colony PO Climax Gujranwala 34101-9711636-5
46 Rashid Ali Aziz Rashid Ali Aziz Abdul Aziz 651 - - 651 651 - - 651
Near Railway Colony, Piran Ghaib, P/O Wapda Colony, 36302-0401118-9
Multan
47 Haq Nawaz Haq Nawaz Muhammed Bux 586 - - 586 586 - - 586
Chak KikarWala, PO Khas, Jhok Vaince, Multan 36302-3736785-5
48 Niaz Hussain Niaz Hussain Manzoor Hussain Bhatti 657 - - 657 657 - - 657
H. NO 889/10 Mohalla Tibi Sher Khan,Multan 36302-0418840-1
49 M/S Sahiwal Trading Coporatrion Muhammad Zahid Iqbal Muhammad Ali 389 2,148 180 2,717 - - 817 817
Citizen Market Chowk Dera Adda Multan (Deceased),
ANNUAL REPORT 2023

36302-4255478-1
50 Liaqat Ali Liaqat Ali Muhammad Manzoor 528 - - 528 528 - - 528
R/O 1-SP Wasaywala PO Same Tehsil Deepalpur 35301-1903769-7
51 Muhammad Jahangir Muhammad Jahangir Muhammad Boota 833 - - 833 833 - - 833
52 Atta Ullah Shah Atta Ullah Shah Ahmed Shah 545 - - 545 545 - - 545
Resident of Muhallah Saidan Tindo Dag Dist Swat 15602-0464193-5
53 Aslam Zeb Aslam Zeb Mian Gul 532 - - 532 532 - - 532
Resident of Bara Drushkhela Dist Swat 15601-0131249-5
54 Muhammad Hussain Muhammad Hussain Alamgir 517 - - 517 517 - - 517
Resident of Muhallah Chitor Saidu Sharif Dist Swat 156023911465-3
55 Fazal Illahi Fazal Illahi Ghawali 938 - - 938 938 - - 938
Kamragara, NaviKali, PO Sarian Bala Dir L 15302-5913190-1
56 Ijaz Hussain Tahir Ijaz Hussain Tahir Ahmad Yar 926 - - 926 926 - - 926
Chak Malka Wala, PO Qadirabad Karimwah, Vehari. 36603-2788639-5
57 Muhammad Arshad Munir Muhammad Arshad Munir Muhammad Munir 11,920 4,988 88 16,996 - - 501 501
Gulgust Colony, Multan 36502-3768116-7
58 Arshad Masih Arshad Masih Munshi Masih 572 - - 572 572 - - 572
Mohallah Rasoolpura, Mailsi 36602-6831987-9
59 Zaheer Ahmed Zaheer Ahmed Muhammed Dawood 661 - - 661 661 - - 661
Village Shahmeer Rahoo, Talka Saeed Abad, District 41301-6676925-3

Matiari.
60 Muhammad Jamil Muhammad Jamil Muhammad Habb 658 - - 658 658 - - 658
Block 5-A, PWD, H. No. 15, Street No. 17, Sector G-9, 61101-4573281-3
Islamabad
61 Mir Muhammed Mir Muhammed Ghulam Hyder 760 - - 760 760 - - 760
42201-8952626-7
62 Ghulam Murtaza Ghulam Murtaza Muhammed Boota 610 - - 610 610 - - 610
H. No.12, Street No. 49-A, Ittehad Colony, Tajpura 35201-5875266-1
Road, Ghaziabad, Lahore.
63 Raqeef Khan Raqeef Khan Abdul Rasheed 676 - - 676 676 - - 676
House No. H-37, Staff Colony, Mirpur AK 81302-1703271-1
64 Ziarat Gul Ziarat Gul Azeem Khan 526 - - 526 526 - - 526
Police Hospital Cantt, Police Lines. 17301-1355176-7
65 Zahoor Ahmed Zahoor Ahmed Sher Muhammed 655 - - 655 655 - - 655
Chagar Matti Peshawar 17301-5161490-7

66 Raja Muhammed Saleem Raja Muhammed Saleem Muhammad Ameen 510 - 4 514 510 - 4 514
Street No. 02, Muhalla Model Town Bhalwal, District 38401-7113926-3
Sargodha.
67 Muhammed Hanif Muhammed Hanif Muhammed Dawood Shaikh 586 - - 586 586 - - 586
Village Mari, P.O Mando Dero, Taluka Rohri, District 45502-2866977-3
Sukkur.
68 Ghulam Abbas Ghulam Abbas Allah Yar Awan 824 - - 824 824 - - 824
245
Village Ali Muhammed Mangrio, Talka Bhirya City, 45301-0588939-7
Lakha Road, District Nausharo Feroz.
Rs. In 000
Outstanding liabilities at beginning of year written-off Mark-up financial (9+10+11)
246
Name of Individuals/
mark-up
69 IE Khan Galina Sargeevna, 50-Pushkina Street, Khan Galina Sargeevna Khan Muhammad Zahid 20,990 - 2,672 23,662 8,219 2,672 - 10,891
Novapakrovka village, Bishkek AN 1919566
70 Aygun Adil Bahramova (grocery store on Agha Aygun Bahramova Adil - 2,304 232 2,536 - 2,304 232 2,536
Neymatulla Street, Baku) AZE 01935360
71 Mirzayeva Bahar Amirsultan Giz (car repair shop on Mirzayeva Bahar Amirsultan Giz - 556 40 596 - 556 40 596
Sharifzade Street, Yasamal district) AZE 09174034
1,153,703 365,737 480,458 1,999,897 49,306 5,532 507,286 562,124
NATIONAL BANK
PAKISTAN
Annexure ‘II’ as referred to in notes 2.1 and 11.7 of the Bank’s
ISLAMIC BANKING BUSINESS
The bank is operating 188 (2022: 188) Islamic banking branches and 150 (2022: 50) Islamic banking windows as at
December 31, 2023.
2023 2022
ASSETS
Note
------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------
Cash and balances with treasury banks 10,248,305 6,096,555
Balances with other banks 43,076 13,766
Investments 1 51,544,718 53,920,119
Islamic financing and related assets - net 2 73,125,189 46,380,996
Fixed assets 70,902 87,489
Right of use assets (ROUA) 640,166 508,977
Other assets 4,488,184 2,294,054
Total Assets 140,160,540 109,301,956
LIABILITIES
Bills payable 477,959 1,210,608

Deposits and other accounts 3 113,801,806 93,591,714
Due to Head Office 12,960,028 4,005,715
Lease liability against right of use assets 811,291 721,152
Other liabilities 2,249,195 1,490,182
130,300,279 101,019,371
NET ASSETS 9,860,261 8,282,585
REPRESENTED BY
Islamic Banking Fund 6,731,000 5,561,000
Surplus / (Deficit) on revaluation of assets (400,216) 424,444
Unappropriated / unremitted profit 5 3,529,477 2,297,141
9,860,261 8,282,585
- -
The profit and loss account of the Bank's Islamic banking branches for the year ended December 31, 2023 is as follows:
2023 2022
Note
------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------
Profit / return earned 7 21,584,554 12,661,168

Profit / return expensed 8 (13,764,527) (7,600,260)
Net Profit / return 7,820,027 5,060,908
Other income
Fee and Commission Income 317,707 317,961
Foreign Exchange Income 61,765 155,195
Other Income 50 2,025
Total other income 379,522 475,181
Total Income 8,199,549 5,536,089
Other expenses
Operating expenses (3,496,250) (3,050,827)
Other charges (220) (374)
Total other expenses (3,496,470) (3,051,201)
Profit before provisions 4,703,079 2,484,888

Provisions and write offs - net (1,173,602) (187,747)
Profit before taxation 3,529,477 2,297,141
Taxation - -
Profit after taxation 3,529,477 2,297,141

2023 2022
Cost / Provision for Surplus / Carrying Cost / Provision for Surplus / Carrying
Amortised cost diminution (Deficit) Value Amortised cost diminution (Deficit) Value
1 Investments by segments:
--------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------
Federal Government Securities:
-Ijarah Sukuks 34,601,068 - (726,606) 33,874,462 33,648,948 - (339,589) 33,309,359
-Listed 7,800,000 - 287,176 8,087,176 8,200,000 - 303,132 8,503,132
-Unlisted 9,674,673 (130,807) 39,214 9,583,080 11,777,533 (130,807) 460,901 12,107,628
17,474,673 (130,807) 326,390 17,670,256 19,977,533 (130,807) 764,033 20,610,760
Total Investments 52,075,741 (130,807) (400,216) 51,544,718 53,626,481 (130,807) 424,444 53,920,119
2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
2 Islamic financing and related assets
Ijarah 2.1 13,749 38,208

Murabaha 2.2 3,291,932 1,713,901
Running Musharaka 30,500,000 -
Diminishing Musharaka 19,357,928 22,062,256
Istisna 705,500 -
Other Islamic Modes (Wakala tul Istismar) 8,500,000 8,500,000
Advance for Murabaha - 2,127,000
Advance for Diminishing Musharaka 113,086 100,894
Advance for Istisna 8,850,972 9,396,236
Inventories against Istisna 3,342,628 3,097,800
Gross Islamic financing and related assets 74,675,795 47,036,295
Less: provision against Islamic financings

- Specific (913,875) (654,980)
- General (636,731) (319)
(1,550,606) (655,299)
Islamic financing and related assets - net of provision 73,125,189 46,380,996
2.1 Ijarah
2023
Cost Depreciation
Book Value as
As at Charge/ As at at December
At January Additions / At January
December 31, Adjustment December 31, 31, 2023
01, 2023 (deletions) 01, 2023
2023 for the year 2023
------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------------------
Plant & Machinery 63,474 - 59,828 50,820 - 47,449 12,379

- (3,646) - - (3,371) -
Vehicles 168,680 - 6,000 143,126 1,065 4,630 1,370
- (162,680) - - (139,561) -
Total 232,154 - 65,828 193,946 1,065 52,079 13,749
(166,326) (142,932)

2022
Cost Accumulated Depreciation
Book Value as
As at Charge/
As at January Additions / As at January As at December at December
December 31, Adjustment for 31, 2022
01, 2022 (deletions) 01, 2022 31, 2022
2022 the year
-------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------
Plant & Machinery 245,257 - 63,474 207,075 25,228 50,820 12,654

(181,783) (181,483)
Vehicles 209,727 - 168,680 152,834 28,725 143,126 25,554
(41,047) (38,433)
Total 454,984 - 232,154 359,909 53,953 193,946 38,208
(222,830) (219,916)
Future Ijarah payments receivable
2023 2022
Later than 1 Later than 1
Not later than Not later than 1
year & less Over five years Total year & less Over five years Total
1 year year
than 5 years than 5 years
-------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------
Ijarah rental receivables 1,460 - - 1,460 36,438 9,802 - 46,240
2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
2.2 Murabaha
Murabaha financing 2.2.1 3,291,932 1,713,901
Advances for Murabaha - 2,127,000
3,291,932 3,840,901
2.2.1 Murabaha receivable - gross 2.2.2 3,409,195 1,868,953

Less: Deferred murabaha income 2.2.4 31,040 73,359
Less: Profit receivable shown in other assets 86,223 81,693
Murabaha financings 3,291,932 1,713,901
2.2.2 The movement in Murabaha financing during the year is as follows:

Opening balance 1,868,953 982,249
Sales during the year 11,165,657 12,721,419
Adjusted during the year 9,625,415 11,834,715

2023 2022
----------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
2.2.3 Murabaha sale price 11,165,657 12,721,419

Murabaha purchase price 10,750,858 12,234,017
414,799 487,402
2.2.4 Deferred murabaha income
Arising during the year 402,591 487,539
Less: Recognised during the year (444,910) (440,160)
3 Deposits
2023 2022
In Local In Foreign In Local In Foreign
Total Total
Currency currencies Currency currencies
Note
-------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------
Customers
Current deposits 23,153,680 185,921 23,339,601 20,491,314 167,871 20,659,185
Savings deposits 56,721,533 - 56,721,533 41,254,385 - 41,254,385
Term deposits 16,261,024 - 16,261,024 15,137,438 - 15,137,438
96,136,237 185,921 96,322,158 76,883,137 167,871 77,051,008
Current deposits 1,879,123 - 1,879,123 354,951 - 354,951
Term deposits 528,613 - 528,613 2,070,766 - 2,070,766
17,479,648 - 17,479,648 16,540,706 - 16,540,706
3.2 113,615,885 185,921 113,801,806 93,423,843 167,871 93,591,714
2023 2022
----------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------

- Individuals 54,111,171 45,084,725
- Government / Public Sector Entities 23,779,916 23,311,046
- Banking Companies 2,338,737 773,228
- Non-Banking Financial Institutions 15,140,911 15,767,478
- Private Sector 18,431,071 8,655,237
113,801,806 93,591,714
3.2 This includes deposits eligible to be covered under insurance arrangements amounting to Rs. 55,033 million
(2022: Rs. 47,134 million).

2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees
Note in '000)--------------------------------
4 Charity Fund
Opening Balance 203 64
Additions during the period

Received from customers on account of delayed payment 9,067 286
Profit on charity saving account 99 3
9,369 353
Payments / utilization during the period
Education 1,500 -
Health 1,500 -
Others - 150
4.1 3,000 150
Closing Balance 6,369 203
4.1 Charity paid during the year are as follows

Indus Hospital & Health Network 1,500 -
The Citizen Foundation 1,500 -
Prime Minister Flood Relief Fund - 150
Total 3,000 150
5 Islamic Banking Business Unappropriated/ Unremitted Profit

Opening Balance 2,297,141 1,502,668
Add: Islamic Banking profit for the year 3,529,477 2,297,141
Less: Transferred / Remitted to Head Office (2,297,141) (1,502,668)
Closing Balance 3,529,477 2,297,141
6 Contingencies & commitment

Guarantees - -
Commitments - -
Other contingent liabilities - -
- -
7 Profit / Return Earned of Financing, Investments and Placement

Profit earned on:
Financing 12,351,676 5,712,166
Investments 9,231,359 6,730,485
Placements 1,519 1,235
Others (Bai Muajjal) - 217,282
21,584,554 12,661,168

2023 2022
----------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
8 Profit on Deposits and other Dues Expensed
Deposits and other accounts 9,901,324 5,589,067

Amortisation of lease liability against - ROUA 79,419 79,103
Others (General Account) 3,783,784 1,932,090
13,764,527 7,600,260
9 Pool Management
NBP-AIBG has managed following pools for profit and loss distribution.
a) General depositor pool
The General pool consists of all other remunerative deposits. NBP Aitemaad (the Mudarib) accept deposits
on the basis of Mudaraba from depositors (Rabbulmaal). The net return on the pool is arrived at after
deduction of direct costs from the gross return earned on the pool. The entire net return after paying equity
share to Mudarib is considered as distributable profit of the pool.
b) Special depositor pools (Total 213 during the period and 47 as at Dec 31, 2023)
Special pool(s) are created where the customers desire to invest in high yield assets. These pool(s) rates
are higher than the general pool depending on the assets. In case of loss in special pool, the loss will be
borne by the special pool members. The net return on the pool is arrived at after deduction of direct costs
from the gross return earned on the pool. From the net return, and after allocation of share of profit to
commingled equity, profit is paid to the Mudarib in the ratio of the Mudarib’s equity in the pool to the total
pool. The balance represents the distributable profit.
c) Equity pool
Equity pools include AIBG's fund and current account deposits. The equity pool may have constructive
liquidation every month and risk associated with assets of pool includes operational, market, equity, return
and Shariah.
Key features and risk & reward characteristics
Deposits are accepted from customers on the basis of Qard (current accounts) and Mudarabah (Saving and
term deposits). No profit or loss is passed on to current account depositors.
For deposits accepted on Mudarabah basis from depositors (Rab ul Maal) the Bank acts as Manager (Mudarib)
and invests the funds in the Shariah Compliant modes of financings. Rab ul Maal share is distributed among
depositors according to weightages declared for a month before start of the period.
In case of loss in a pool during the profit calculation period, the loss is distributed among the depositors
(remunerative) according to their ratio of investment.
For all pools, the Mudarib’s share is deducted from the distributable profit to calculate the profit to be allocated
to depositors. The allocation of the profit to various deposit categories is determined by the amount invested in
that category relative to the total pool, as well as by the weightage assigned to the various deposit categories.

The assets, liabilities, equities, income and expenses are segregated for each of the pool. No pool investment is
intermingled with each other. The risk associated with each pool is thus equally distributed among the pools.
Avenues/sectors of economy/business where Modaraba based deposits have been deployed.
2023 2022
------------------------------------------------------------------------------------------------------------------------------------------------(Percentage)---------------------------------
Sector
Fertilizer 0.00% 1.48%
Textile 3.34% 4.25%
Fuel & energy 24.72% 34.07%
Leasing/Modarbas 0.02% 0.03%
Sugar 6.12% 7.80%
Cement 3.81% 6.10%
Gas 0.15% 0.35%
Financial 1.57% 1.94%
Federal Government 27.29% 32.95%
Real Estate 2.45% 3.10%
Agriculture 0.24% 0.30%
Commodity Operations 23.66% 0.00%
Others 6.62% 7.64%
Total 100% 100%
Parameters for profit allocation and charging expenses
Profit of the pools has been distributed between Mudarib and Rab-ul-Mall by using preagreed profit sharing
ratios. The share of Rab-ul-Mall's profit has been distributed among different customers using the various
weightages assigned to the different categories of the pool.
No provision against any non performing asset of the pool is passed on to the pool except on the actual loss /
write off of such non performing asset. Administrative expense are borne by mudarib and not charged to
Mudaraba pool.
31-Dec-23
Rupees in '000
Mudarib Share
Gross Distributable Income 17,033,942
Mudarib (Bank) share of profit before Hiba 5,216,246
Mudarib Share in percentage 31%
Hiba from Mudarib Share

Hiba from bank's share to depositors 1,779,501
Hiba from bank's share to depositors in percentage 34%
Profit rates
During the year ended Dec 31, 2023 the average profit rate earned by NBP Islamic Banking Group is 19.03%
and the profit distributed to the depositors is 14.31%.

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Karachi - 74000 Road, Karachi - 74200
INDEPENDENT AUDITORS’ REPORT
To the members of National Bank of Pakistan

Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the annexed consolidated financial statements of National Bank of Pakistan and its subsidiaries (the
Group), which comprise the consolidated statement of financial position as at December 31, 2023, and the consolidated
profit and loss account, the consolidated statement of comprehensive income, the consolidated statement of changes in
equity and the consolidated cash flow statement for the year then ended, and notes to the consolidated financial
statements, including material accounting policy information and other explanatory information.
In our opinion, consolidated financial statements give a true and fair view of the consolidated financial position of the
Group as at December 31, 2023, and of its consolidated financial performance and its consolidated cash flows for the
year then ended in accordance with the accounting and reporting standards as applicable in Pakistan.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the
International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants as adopted by the
Institute of Chartered Accountants of Pakistan (the Code), and we have fulfilled our other ethical responsibilities in
accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Emphasis of Matter
We draw attention to note 26.3.4.1 to the consolidated financial statements which explains the contingency in relation to
the pension obligation of the Group. The Group, based on the opinion of its legal counsel, is confident about a favorable
outcome on this matter and hence, no provision has been made in these consolidated financial statements. Our opinion is
not modified in respect of this matter.
Key Audit Matter
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of our audit of the
consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.

-
Following are the Key Audit Matters:
1 Provision against advances

(Refer notes 5.8 and 11.4 to the
consolidated financial statements)
The Group makes provision against Our audit procedures to verify provision against domestic
advances extended in Pakistan on a time- advances included, amongst others, the following:
based criteria that involves ensuring that all Ÿ Obtained an understanding of the management process
non-performing advances are classified in to record provision and ensure that it is consistent with
accordance with the ageing criteria specified the requirements of PRs;
in the Prudential Regulations (PRs) issued
by the State Bank of Pakistan (SBP).
Ÿ Evaluated the design and tested the operating
effectiveness of the relevant controls established by the
Group to identify loss events and for determining the
In addition to the above time-based criteria,
extent of provisioning required against non-performing
the PRs require a subjective evaluation of
advances.
the credit worthiness of borrowers to
determine the classification of advances. The testing of controls included testing of:
Ÿ controls over correct classification of non-performing
The PRs also require the creation of general advances on time-based criteria;
provision for certain categories of advances.
Ÿ controls over accurate computation and recording of
Provision against advances of overseas provision; and
locations is made as per the requirements of Ÿ controls over the governance and approval process
the respective regulatory regimes. related to provision, including continuous reassessment
by the management.
The Group has recognized a net provision
We selected a sample of loan accounts and performed the
against advances amounting to Rs. 13,321
following substantive procedures to evaluate the
million in the consolidated profit and loss
appropriateness of specific and general provision:
account in the current year. As at December
31, 2023, the Group holds a provision of Rs. Ÿ Checked credit documentation, repayments of loan /
233,833 million against advances. This mark-up instalments, tested classification of non-
includes a general provision against the performing advances based on the number of days
overdue;
underperforming portfolio on a prudent
basis. Ÿ Evaluated the management’s assessment for
classification of a customer’s loan facilities as
The determination of provision against performing or non-performing based on review of
advances based on the above criteria repayment pattern, inspection of credit documentation
remains a significant area of judgement and and discussions with the management;
estimation. Because of the significance of Ÿ In case of restructured loans, we reviewed the detailed
the impact of these judgements / documentation of restructuring including approvals,
estimations and the materiality of advances legal opinions, terms of restructuring, payment records
relative to the overall consolidated financial and any other relevant documents to ensure that
statements of the Group, we considered the restructuring was made in accordance with the PRs;
area of provision against advances as a key Ÿ We also reviewed minutes of the meeting of credit, risk
audit matter. and compliance and audit committees to identify risky
exposures; and

-
Ÿ We had discussions with management to challenge

assumptions and judgements used in performing
portfolio review and recording provisions.
We issued instructions to auditors of those overseas
branches and a joint venture which were selected for audit,
highlighting ‘Provision against advances’ as a significant
risk. The auditors of those branches and joint venture
performed audit procedures to check compliance with
regulatory requirements and reported the results thereof to
us. We, as auditors of the Group, evaluated the work
performed by the component auditors and the results
thereof.
Information Other than the Consolidated and Unconsolidated Financial Statements and Auditors’ Reports
Thereon
Management is responsible for the other information. The other information comprises the information included in the
Annual Report, but does not include the consolidated and unconsolidated financial statements and our auditor’s reports
thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work
we have performed, we conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
Responsibilities of Management and the Board of Directors for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in
accordance with accounting and reporting standards as applicable in Pakistan, the requirements of Banking Companies
Ordinance, 1962 and the Companies Act, 2017 (XIX of 2017) and for such internal control as management determines is
necessary to enable the preparation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
The Board of directors is responsible for overseeing the Group's financial reporting process.

-
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs as applicable in Pakistan will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Ÿ Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Ÿ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's
internal control.
Ÿ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
Ÿ Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue
as a going concern.
Ÿ Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
Ÿ Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Board of Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Board of Directors, we determine those matters that were of most significance in
the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.

-
Other Matter
The consolidated financial statements of the Group as at and for the year ended December 31, 2022 were audited by
Yousuf Adil, Chartered Accountants and A. F. Ferguson & Co. Chartered Accountants who had expressed an unmodified
opinion on those statements vide their report dated March 6, 2023.
The engagement partners on the audit resulting in this independent auditor’s report are Zulfikar Ali Causer and Shahbaz
Akbar on behalf of BDO Ebrahim & Co. Chartered Accountants and A. F. Ferguson & Co. Chartered Accountants
respectively.
A. F. Ferguson & Co. BDO Ebrahim & Co.

Karachi Karachi
UDIN: AR202310068261NTzJfD UDIN: AR202310067MY4xgiOdm

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
2022 2023 2023 2022

Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees
-------------------------(US Dollars in '000)------------------------------------------------------------------------------------------------------------------------------------------------
in '000)--------------------------------
ASSETS
816,809 1,048,232 Cash and balances with treasury banks 7 295,455,482 230,226,311
69,620 152,574 Balances with other banks 8 43,004,567 19,623,124
110,950 682,715 Lendings to financial institutions 9 192,430,437 31,272,467
12,356,940 15,660,836 Investments 10 4,414,174,305 3,482,935,847
4,366,231 4,960,154 Advances 11 1,398,072,669 1,230,669,118
204,372 203,920 Fixed assets 12 57,477,067 57,604,343
7,455 7,757 Intangible assets 13 2,186,294 2,101,322
25,495 26,027 Right of use assets 14 7,335,901 7,186,067
79,494 - Deferred tax assets 15 - 22,406,230
595,120 917,962 Other assets 16 258,737,303 167,741,065
18,632,486 23,660,177 6,668,874,025 5,251,765,894
LIABILITIES
196,083 241,256 Bills payable 17 68,000,448 55,268,019

6,884,556 7,726,310 Borrowings 18 2,177,743,194 1,940,485,787
9,455,995 13,031,650 Deposits and other accounts 19 3,673,109,914 2,665,273,257
431 739 Liabilities against assets subject to finance lease 20 208,268 121,453
- - Subordinated debt - -
31,083 30,805 Lease liabilities against right of use assets 21 8,682,732 8,761,015
- 2,989 Deferred tax liabilities 15 842,568 -
963,440 1,216,462 Other liabilities 22 342,872,862 271,556,131
17,531,588 22,250,211 6,271,459,986 4,941,465,662
1,100,898 1,409,966 NET ASSETS 397,414,039 310,300,232
REPRESENTED BY
75,481 75,481 Share capital 23 21,275,131 21,275,131

239,440 301,847 Reserves 24 85,078,819 67,488,847
149,980 227,887 Surplus on revaluation of assets 25 64,232,415 42,273,537
632,190 800,727 Unappropriated profit 225,693,440 178,189,579
1,097,091 1,405,942 Total Equity attributable to the equity holders of the Bank 396,279,805 309,227,094
3,807 4,024 Non-controlling interest 1,134,234 1,073,138
1,100,898 1,409,966 397,414,039 310,300,232

CONSOLIDATED PROFIT AND LOSS ACCOUNT
2022 2023 2023 2022

Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees
-------------------------(US Dollars in '000)------------------------------------------------------------------------------------------------------------------------------------------------
in '000)--------------------------------
1,786,613 3,637,026 Mark-up / return / interest earned 27 1,025,134,662 503,575,915

1,371,153 3,036,182 Mark-up / return / interest expensed 28 855,780,390 386,474,248
415,460 600,844 Net mark-up / interest income 169,354,272 117,101,667
80,030 85,632 Fee and commission income 29 24,136,296 22,557,400

17,988 18,465 Dividend income 5,204,557 5,070,140
29,384 27,468 Foreign exchange income 7,742,186 8,282,139
- - Income / (loss) from derivatives - -
3,985 15,686 Gain on securities - net 30 4,421,246 1,123,216
1,934 4,350 Share of profit from joint venture - net of tax 10.4 1,226,065 545,161
(337) 870 Share of profit / (loss) from associates - net of tax 10.4 245,202 (95,084)
6,351 6,374 Other income 31 1,796,449 1,790,098
139,335 158,845 Total non-markup / interest income 44,772,001 39,273,070
554,795 759,689 Total income 214,126,273 156,374,737
NON MARK-UP / INTEREST EXPENSES
282,367 337,611 Operating expenses 32 95,159,211 79,588,284

258 1,015 Other charges 33 285,960 72,848
282,625 338,626 Total non-markup / interest expenses 95,445,171 79,661,132
272,170 421,063 Profit before provisions 118,681,102 76,713,605
46,535 54,574 Provisions and write offs - net 34 15,382,139 13,116,455
225,635 366,489 PROFIT BEFORE TAXATION 103,298,963 63,597,150
115,831 177,313 Taxation 35 49,977,566 32,648,139

109,804 189,176 PROFIT AFTER TAXATION 53,321,397 30,949,011
Attributable to:
109,399 188,399 Equity holders of the Bank 53,101,601 30,834,587
406 780 Non-controlling interest 219,796 114,424
109,804 189,179 53,321,397 30,949,011
-------------------------------------------------------------------------------------------------------------------------------------------------(Rupees)-------------------------------------
----------------------------(US Dollars)-----------------------------------------------------------------------------------------------------------------------------------------------------
0.05 0.09 Basic earnings per share 36 24.96 14.49
0.05 0.09 Diluted earnings per share 37 24.96 14.49

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2022 2023 2023 2022

---------------------------------------------------------------------------------------------------------------------------------------------(Rupees
-------------------------(US Dollars in '000)------------------------------------------------------------------------------------------------------------------------------------------------
in '000)--------------------------------
109,804 189,176 Profit after taxation for the year 53,321,397 30,949,011
Other comprehensive income / (loss)
Items that may be reclassified to profit and loss

Effect of translation of net investments in foreign

35,551 44,014 branches, subsidiaries and joint venture 12,405,926 10,020,548
Movement in surplus / (deficit) on revaluation of
(89,784) 79,162 investments - net of tax 22,312,569 (25,306,566)
(54,233) 123,176 34,718,495 (15,286,018)
Items that will not be reclassified to profit and loss

(11,102) (2,112) Remeasurement loss on defined benefit obligations - net of tax (595,239) (3,129,095)
Movement in (deficit) / surplus on revaluation of fixed
10,983 (1,314) assets - net of tax (370,278) 3,095,713
Movement in surplus / (deficit) on revaluation of non-
(1,110) 703 banking assets - net of tax 198,132 (312,906)
Share of remeasurement gain on defined benefit
53 - obligations of joint venture - net of tax - 14,886
(1,176) (2,723) (767,385) (331,402)
54,395 309,629 Total comprehensive income 87,272,507 15,331,591
Total comprehensive income attributable to:
53,989 308,849 Equity holders of the Bank 87,052,711 15,217,167

406 780 Non-controlling interest 219,796 114,424
54,395 309,629 87,272,507 15,331,591

Reserves Surplus / (deficit) on revaluation of assets
266
Fixed / Non-
Share General Revenue Unappropriated
Exchange Statutory Investments Non- Sub Total Controlling Total
capital loan loss general Total Total profit
translation reserve Banking Interest
reserve reserve
Assets
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Balances as at January 01, 2022 21,275,131 14,880,385 39,025,546 8,000,000 521,338 62,427,269 19,552,731 45,442,249 64,994,980 145,312,547 294,009,927 1,013,454 295,023,381
Profit after taxation for the year
ended December 31, 2022 - - - - - - - - - 30,834,587 30,834,587 114,424 30,949,011
Other comprehensive income -
net of tax - 10,020,548 - - - 10,020,548 (25,306,566) 2,782,807 (22,523,759) (3,114,209) (15,617,420) - (15,617,420)
Total Comprehensive Income - 10,020,548 - - - 10,020,548 (25,306,566) 2,782,807 (22,523,759) 27,720,378 15,217,167 114,424 15,331,591
Transfer to statutory reserve - - 3,041,030 - - 3,041,030 - - - (3,041,030) - - -

Transfer from surplus on revaluation
of assets to unappropriated profit - net of tax - - - - - - - (197,684) (197,684) 197,684 - - -
Transfer to unappropriated profit - - - (8,000,000) - (8,000,000) - - - 8,000,000 - - -
Transactions with owners,

recorded directly in equity
Cash dividend paid / profit distribution

by subsidiaries - - - - - - - - - - - (54,740) (54,740)
Balance as at December 31, 2022 21,275,131 24,900,933 42,066,576 - 521,338 67,488,847 (5,753,835) 48,027,372 42,273,537 178,189,579 309,227,094 1,073,138 310,300,232
Profit after taxation for the year
ended December 31, 2023 - - - - - - - - - 53,101,601 53,101,601 219,796 53,321,397
Other comprehensive income -
net of tax - 12,405,926 - - - 12,405,926 22,312,569 (172,146) 22,140,423 (595,239) 33,951,110 - 33,951,110
Total Comprehensive Income - 12,405,926 - - - 12,405,926 22,312,569 (172,146) 22,140,423 52,506,362 87,052,711 219,796 87,272,507
Transfer to statutory reserve - - 5,184,046 - - 5,184,046 - - - (5,184,046) - - -
Transfer from surplus on revaluation
of assets to unappropriated profit -
net of tax - - - - - - - (181,545) (181,545) 181,545 - - -
Transactions with owners,

recorded directly in equity
Cash dividend paid / profit distribution

by subsidiaries - - - - - - - - - - - (158,700) (158,700)
Balance as at December 31, 2023 21,275,131 37,306,859 47,250,622 - 521,338 85,078,819 16,558,734 47,673,681 64,232,415 225,693,440 396,279,805 1,134,234 397,414,039
The annexed notes 1 to 50 and annexures I and II form an integral part of these unconsolidated financial statements.
NATIONAL BANK
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
PAKISTAN
CONSOLIDATED CASH FLOW STATEMENT
2022 2023 2023 2022

Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees
-------------------------(US Dollars in '000)------------------------------------------------------------------------------------------------------------------------------------------------
in '000)--------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
225,635 366,489 Profit before taxation 103,298,963 63,597,150
(17,988) (18,465) Less: Dividend income (5,204,557) (5,070,140)
207,647 348,024 98,094,406 58,527,010
Adjustments:
16,992 16,926 Depreciation 4,770,819 4,789,320
1,298 1,152 Amortization 324,753 365,818
46,535 54,574 Provision and write-offs 34 15,382,139 13,116,455
(238) - Gain on disposal of subsidiary and branch - (67,007)
(60) (796) Gain on sale of fixed assets - net (224,324) (17,005)
3,367 3,245 Finance charges on leased assets 914,611 949,086
Unrealized loss on revaluation of investments
2,212 93 classified as held-for-trading 26,152 623,477
29,896 42,571 Charge for defined benefit plans - net 11,999,040 8,426,536
(1,934) (4,350) Share of profit from joint venture - net of tax (1,226,065) (545,161)
337 (870) Share of (profit) / loss from associates - net of tax (245,202) 95,084
98,405 112,545 31,721,923 27,736,603
306,052 460,569 129,816,329 86,263,613
(Increase) / Decrease in operating assets
1,004,731 (571,765) Lendings to financial institutions (161,157,970) 283,194,208
123,434 142,759 Held-for-trading securities 40,238,071 34,791,299
(474,789) (684,907) Advances (193,048,283) (133,824,495)
(239,643) (291,090) Others assets (excluding advance taxation) (82,046,762) (67,545,828)
413,733 (1,405,003) (396,014,944) 116,615,184
Increase / (Decrease) in operating liabilities
118,568 45,173 Bills payable 12,732,429 33,419,749
5,846,108 795,792 Borrowings from financial institutions 224,302,435 1,647,788,025
(1,251,946) 3,575,655 Deposits 1,007,836,657 (352,874,452)
242,738 249,064 Other liabilities 70,201,315 68,418,362
4,955,468 4,665,684 1,315,072,836 1,396,751,684
(119,879) (196,368) Income tax adjusted / paid (55,348,344) (33,789,222)

(12,897) (13,033) Payments on account of staff retirement benefits (3,673,572) (3,635,107)
5,542,477 3,511,849 Net cash flow generated from operating activities 989,852,305 1,562,206,152
CASH FLOW FROM INVESTING ACTIVITIES

(5,441,639) (3,939,253) Net investments in available-for-sale securities (1,110,320,687) (1,533,784,118)
(309,691) 653,067 Net investments in held-to-maturity securities 184,073,787 (87,289,700)
17,988 18,465 Dividends received 5,204,557 5,070,140
(9,779) (11,281) Investments in fixed assets and intangibles (3,179,760) (2,756,355)
350 1,628 Proceeds from sale of fixed assets 458,886 98,556
35,551 46,619 Effect of translation of net investment in foreign branches 13,140,176 10,020,548
397 - Proceed from closure of subsidiary and branch - 111,822
(5,706,823) (3,230,755) Net cash flow used in investing activities (910,623,041) (1,608,529,107)
CASH FLOW FROM FINANCING ACTIVITIES

(9,509) (12,653) Payments of lease obligations (3,566,480) (2,680,093)
(1) (25) Dividend paid (7,142) (146)
(9,510) (12,678) Net cash flow used in financing activities 38.1 (3,573,622) (2,680,239)
(173,856) 268,416 Increase / (Decrease) in cash and cash equivalents 75,655,642 (49,003,194)
957,366 785,646 Cash and cash equivalents at beginning of the year 222,787,444 271,509,796
5,472 4,476 Effect of exchange rate changes on cash and cash equivalents 1,261,569 1,542,411
968,749 794,893 224,049,013 273,052,207
794,893 1,063,309 Cash and cash equivalents at end of the year 38 299,704,655 224,049,013

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
1. THE GROUP AND ITS OPERATIONS
1.1 The "Group" consists of:
Holding Company
- National Bank of Pakistan (the Bank)
Percentage Holding
2023 2022
Subsidiary Companies % %
- CJSC Subsidiary Bank of NBP in Kazakhstan 100.00 100.00

- NBP Exchange Company Limited, Pakistan 100.00 100.00
- National Bank Modaraba Management Company Limited, Pakistan 100.00 100.00
- First National Bank Modaraba, Pakistan 30.00 30.00
- Taurus Securities Limited, Pakistan 58.32 58.32
- NBP Fund Management Limited, Pakistan 54.00 54.00
- Cast-N-Link Products Limited (Note 10.16.1) 76.51 76.51
The subsidiary company of the Group, National Bank Modaraba Management Company Limited, Pakistan
exercises control over First National Bank Modaraba, Pakistan as its management company and also has a
direct economic interest in it. The Group has consolidated the financial statements of the modaraba as the
ultimate holding company.
The Group is principally engaged in commercial banking, modaraba management, brokerage, leasing, foreign
currency remittances, asset management, exchange transactions and investment advisory asset. Brief profile of
the Holding Company and subsidiaries is as follows:
National Bank of Pakistan
National Bank of Pakistan (the Bank) was incorporated in Pakistan under the National Bank of Pakistan
Ordinance, 1949 and is listed on the Pakistan Stock Exchange (PSX). Its registered and head office is situated
at I.I. Chundrigar Road, Karachi. The Federal Government and Pakistan Sovereign Wealth Fund (PSWF) holds
75.60% (2022: Federal Government and SBP 75.60%) shares of the Bank. The Bank is engaged in providing
commercial banking and related services in Pakistan and overseas. The Bank also handles treasury
transactions for the Government of Pakistan (GoP) as an agent to the SBP. The Bank operates 1,508 (2022:
1,512) branches in Pakistan including 188 (2022: 188) Islamic Banking branches and 18 (2022: 18) overseas
branches (including the Export Processing Zone branch, Karachi). The Bank also provides services in respect
of Endowment Fund for students loan scheme and IPS accounts.
CJSC Subsidiary Bank of NBP in Kazakhstan
CJSC Subsidiary Bank of NBP in Kazakhstan (JSCK) is a joint-stock bank, which was incorporated in the
Republic of Kazakhstan in 2001. CJSC conducts its business under license number 252 dated December 27,
2007 (initial license was dated December 14, 2001) and is engaged in providing commercial banking services.
The registered office of JSCK is located at 105, Dostyk Ave, 050051, Almaty.
NBP Exchange Company Limited, Pakistan
NBP Exchange Company Limited (NBPECL) is a public unlisted company, incorporated in Pakistan on
September 24, 2002 under the repealed Companies Ordinance, 1984 (now Companies Act, 2017). NBPECL

obtained license for commencement of operations from State Bank of Pakistan (SBP) on November 25, 2002
and commencement of business certificate on December 26, 2003 from the Securities and Exchange
Commission of Pakistan (SECP). The registered office of NBPECL is situated at Shaheen Complex, M.R.
Kiryani Road, Karachi. NBPECL is engaged in foreign currency remittances and exchange transactions.
NBPECL has 22 branches (2022: 20 branches) and 1 booth (2022: 1).
National Bank Modaraba Management Company Limited, Pakistan
National Bank Modaraba Management Company Limited (NBMMCL) is a public unlisted company, incorporated
in Pakistan on August 6, 1992 under the repealed Companies Ordinance, 1984 (now Companies Act, 2017).
The purpose of the NBMMCL is to float and manage modaraba funds. NBMMCL at present is managing First
National Bank Modaraba. Its registered office is situated at Ground Floor, National Bank of Pakistan, Regional
Headquarters Building, 26-Mc Lagon Road, Lahore.
First National Bank Modarba, Pakistan
First National Bank Modaraba (the Modaraba) is a multi-purpose, perpetual and multi-dimensional Modaraba
formed under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and Rules
framed thereunder. The Modaraba is managed by National Bank Modaraba Management Company Limited (a
wholly owned subsidiary of National Bank of Pakistan), incorporated in Pakistan under the repealed Companies
Ordinance, 1984 (now Companies Act, 2017) and registered with the Registrar of Modaraba Companies. The
registered office of the Modaraba is situated at Ground Floor, National Bank of Pakistan, Regional Headquarters
Building, 26-Mc Lagon Road, Lahore. The Modaraba is listed at Pakistan Stock Exchange Limited. It
commenced its operations on December 04, 2003 and is currently engaged in various Islamic modes of
financing and operations including ijarah, musharaka and murabaha arrangements.
Taurus Securities Limited, Pakistan
Taurus Securities Limited (TSL) is a public unquoted company, incorporated in Pakistan on June 27, 1993 under
the repealed Companies Ordinance, 1984 (now Companies Act, 2017). The registered office of TSL is situated
at 6th Floor, Progressive Plaza, Beaumont Road, Civil Lines, Karachi. It is engaged in the business of stock
brokerage, investment counselling, and fund placements. TSL holds a Trading Right Entitlement (TRE)
Certificate from Pakistan Stock Exchange Limited.
NBP Fund Management Limited, Pakistan
NBP Fund Management Limited, Pakistan - NBP Funds, was incorporated in Pakistan as public limited
company on August 24, 2005 under the repealed Companies Ordinance, 1984 (now Companies Act, 2017) and
obtained certificate for commencement of business on December 19, 2005. The main sponsors of NBP Funds
are National Bank of Pakistan and Baltoro Growth Fund. Baltoro Growth Fund has acquired shareholding of
NBP Funds which was previously held by Alexandra Fund Management Private Limited on October 08, 2018.
NBP Funds is mainly involved in the business of asset management and investment advisory services. NBP
Funds has been issued license by the Securities and Exchange Commission of Pakistan (SECP) to carry out
business of asset management services and investment advisory services as a Non-Banking Finance Company
(NBFC) under section 282C of the repealed Companies Ordinance, 1984 (now Companies Act, 2017) and
under the Non-Banking Finance Companies and Notified Entities Regulations, 2008. The principal / registered
office of the company is situated at 7th Floor, Clifton Diamond Building, Block No. 4, Scheme No. 5, Clifton,
Karachi.

As at December 31, 2023 NBP Funds is managing the following funds and discretionary portfolio:
Type of Fund
- NBP Government Securities Liquid Fund Open end Fund
- NBP Mahana Amdani Fund Open end Fund
- NBP Financial Sector Income Fund Open end Fund
- NBP Money Market Fund Open end Fund
- NBP Government Securities Savings Fund Open end Fund
- NBP Income Opportunity Fund Open end Fund
- NBP Islamic Money Market Fund Open end Fund
- NBP Islamic Daily Dividend Fund Open end Fund
- NBP Riba Free Savings Fund Open end Fund
- NBP Islamic Mahana Amdani Fund Open end Fund
- NBP Savings Fund Open end Fund
- NBP Islamic Savings Fund Open end Fund
- NBP Balanced Fund Open end Fund
- NBP Islamic Sarmaya Izafa Fund Open end Fund
- NBP Pension Fund Open end Fund
- NBP Islamic Pension Fund Open end Fund
- NBP Stock Fund Open end Fund
- NBP Islamic Stock Fund Open end Fund
- NBP Sarmaya Izafa Fund Open end Fund
- NBP Islamic Energy Fund Open end Fund
- NBP Financial Sector Fund Open end Fund
- NBP Islamic Income Fund Open end Fund
- NBP Pakistan Growth Exchange Traded Fund Open end Fund
- NBP Government Securities Fund - I Open end Fund
- NBP Income Fund Of Fund Open end Fund
- NBP Mustahkam Fund Open end Fund
- NBP Islamic Mustahkam Fund Open end Fund
- NBP Gokp Pension Fund Open end Fund
- NBP Gokp Islamic Pension Fund Open end Fund
1.2 Basis of consolidation
- The consolidated financial statements include the financial statements of the Bank (Holding Company) and
its subsidiary companies together - "the Group".
- Subsidiary companies are fully consolidated from the date on which more than 50% of voting rights are
transferred to the Group or power to control the company is established and excluded from consolidation
from the date of disposal or when the control is lost.
- The assets, liabilities, income and expenses of subsidiary companies have been consolidated on a line by
line basis.
- Income and expenses of subsidiaries acquired during the year are included in the consolidated statement
of the comprehensive income from the effective date of acquisition.
- Non-Controlling interest / (minority interest) in equity of the subsidiary companies are measured at fair
value for all the subsidiaries acquired from period beginning on or after January 1, 2010 whereas minority
interest of previously acquired subsidiaries are measured at the proportionate net assets of subsidiary
companies attributable to interest which is not owned by holding company.
- Material intra-group balances and transactions have been eliminated.

2. BASIS OF PRESENTATION
2.1 In accordance with the directives of the Federal Government of Pakistan regarding the shifting of banking
system to Islamic modes, the SBP has issued various circulars from time to time. Permissible forms of trade
related mode of financing includes purchase of goods by banks from their customers and immediate resale to
them at appropriate mark-up in price on deferred payment basis. The purchases and sales arising under these
arrangements are not reflected in these consolidated financial statements as such but are restricted to the
amount of facility actually utilized and the appropriate portion of mark-up thereon.
Key financial figures of the Islamic banking branches of the Bank have been disclosed in note annexure-II to
these consolidated financial statements.
2.2 The US Dollar amounts shown on the statement of financial position, profit and loss account, statement of
comprehensive income and cash flow statement are stated as additional information solely for the convenience
of readers. For the purpose of conversion to US Dollars, the rate of Rs. 281.8607 to 1 US Dollar has been used
for 2023 and 2022 as it was the prevalent rate as on December 31, 2023.
3. STATEMENT OF COMPLIANCE
3.1 These consolidated financial statements have been prepared in accordance with the accounting and reporting
standards as applicable in Pakistan. The accounting and reporting standards applicable in Pakistan comprise
of:
- International Financial Reporting Standards (IFRS), issued by the International Accounting Standards
Board (IASB) as notified under the Companies Act, 2017;
- Islamic Financial Accounting Standards (IFAS), issued by the Institute of Chartered Accountants of
Pakistan as notified under the Companies Act, 2017;
- Provisions of and directives issued under the Banking Companies Ordinance, 1962 and the Companies
Act, 2017; and
- Directive issued by the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of
Pakistan (SECP);
Where the requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017, or the
directives issued by the SBP and the SECP differ with the requirements of IFRS or IFAS, the requirements of
the Banking Companies Ordinance, 1962, the Companies Act, 2017 and the said directives shall prevail.
3.2 SBP has deferred the applicability of International Accounting Standard (IAS) 39, 'Financial Instruments:
Recognition and Measurement' and IAS 40, 'Investment Property' for Banking Companies through BSD Circular
Letter No. 10 dated August 26, 2002. Moreover, SBP vide BPRD circular no. 4, dated February 25, 2015, has
deferred the applicability of Islamic Financial Accounting Standards (IFAS) 3, Profit and Loss Sharing on
Deposits. Further, according to the notification of SECP dated April 28, 2008, the IFRS - 7 "Financial
Instruments: Disclosures" has not been made applicable for banks. Accordingly, the requirements of these
standards have not been considered in the preparation of these consolidated financial statements. However,
investments have been classified and valued in accordance with the requirements of various circulars issued by
the SBP.
3.3 The SECP vide SRO 56 (1) / 2016 dated January 28, 2016, has notified that the requirements of IFRS 10
(Consolidated Financial Statements) and section 228 of the Companies Act, 2017 will not be applicable with
respect to the investment in mutual funds established under trust structure.

3.4 Application of new and revised International Financial Reporting Standards (IFRSs)
that are effective in the current year:
There are certain new and amended standards, interpretations and amendments that are mandatory for the
Bank's accounting periods beginning on January 1, 2023 but are considered not to be relevant or do not have
any significant effect on the Bank's operations and are therefore not detailed in these consolidated financial
statements.
that are not yet effective:
The following revised standards, amendments and interpretations with respect to the accounting and reporting
standards would be effective from the dates mentioned below against the respective standards, amendments or
interpretations:
Effective from accounting

Standards, interpretations or amendments period beginning on or after
- IFRS 9 - ‘Financial instruments' January 01, 2024

- IAS 21 - ‘Lack of exchangeability' (amendments) January 01, 2025
- IAS 1 - ‘Non current liabilities with covenants' (amendments) January 01, 2024
- IFRS 16 - ‘Sale and leaseback' (amendments) January 01, 2024
3.4.3 The SBP vide its BPRD Circular No. 02 of 2023 dated February 09, 2023 has specified the new reporting format
for financial statements of Banking Companies. The new format has revised the disclosure requirements and
will become applicable for the financial statements of the Bank for the quarter ending March 31, 2023. However,
SBP vide its BPRD circular No. 07 of 2023 has deferred the applicability from January 01, 2023 to January 01,
2024.
3.4.4 Other than the aforesaid standards, interpretations and amendments, the International Accounting Standards
Board (IASB) has also issued the following standards which have not been adopted locally by the Securities
and Exchange Commission of Pakistan:
- IFRS 1 – First Time Adoption of International Financial Reporting Standards
- IFRS 17 – Insurance Contracts
3.4.5 The management anticipates that these new standards, interpretations and amendments will be adopted in the
Group’s consolidated financial statements as and when they are applicable and adoption of these new
standards, interpretations and amendments, may have no material impact on these consolidated financial
statements of the Group in the period of initial application.
3.4.6 IFRS 9 Financial Instruments:
As directed by SBP via BPRD Circular no 07 of 2023, IFRS 9 Financial Instruments is effective for periods
beginning on or after January 01 2024 for banks having asset base of more than Rs. 500 billion as at December
31 2022. SBP via same circular has finalized the instructions on IFRS 9 (Application Instructions) for ensuring
smooth and consistent implementation of the standard in the banks.
During 2023, the management of the Bank has performed an impact assessment of IFRS 9 taking into account
the SBP’s IFRS 9 application instructions. The assessment is based on available information and may be
subject to changes arising from further reasonable and supportable information being made available to the
Bank at the time of finalizing the impact for initial application of IFRS 9. In addition, the Bank will implement
changes in classification of certain financial instruments. These changes and impacts are discussed below:

An overview of the IFRS 9 requirements that are expected to have significant impact are discussed below along
with the additional requirements introduced by the SBP:
Governance, ownership and responsibilities
The Bank has adopted a governance framework requiring the Risk, Finance, Operations, Internal Audit and IT
functions to effectively work together to ensure input from all business lines. IFRS 9 requires robust credit risk
models that can predict Probability of Default (PD), Loss Given Default (LGD) and Exposure at Default (EAD).
Risk Management Division has developed Models / methodologies for PD, LGD and Credit Conversion Factor
(CCF). These models shall be validated on annual basis considering the following aspects:
- Quantitative Validation: Expected credit loss (ECL) model design validation, data quality validation and
benchmarking with external best practices.
- Quantitative Validation: Calibration testing which ensures the accuracy of the observed PDs.
Finance Group will ensure preparation of disclosures and incorporation of the impacts on the financial
statements of the Bank. The function shall identify, prepare and extract the data required for the risk parameters
modelling and ECL calculations. Finance Division shall ensure that all disclosures as required by the accounting
standard and the SBP formats and guidelines are made.
The risk management division will perform the back testing of ECL at least on yearly basis and will be
responsible for the independent validation of the risk parameters / risk models; including PD, LGD and CCF etc.,
that are used to compute the ECL which would be carried out as per the policy.
Internal Audit will carry out periodic review of IFRS 9 methodology and impacts calculated by the Management.
The classification and measurement of financial assets will depend on how these are managed (the entity’s
business model) and their contractual cash flow characteristics. Financial assets that do not meet the SPPI
criteria are measured at FVTPL regardless of the business model in which they are held. The Bank’s business
model in which financial assets are held will determine whether the financial assets are measured at amortised
cost, fair value through other comprehensive income (‘FVOCI’) or fair value through profit or loss (‘FVPL’). The
classification of equity instruments is generally measured as Fair Value through Profit & Loss (FVTPL) unless
the Bank elects for Fair Value through Other Comprehensive Income (FVTOCI) at initial recognition. The Bank
has analyzed the impact of initial application of IFRS 9 on its financial assets as follows:
Equity Securities
The Bank expects to continue measuring at fair value all financial assets currently held at fair value.
For certain listed equity securities currently classified as available-for-sale (AFS) with gains and losses recorded
in OCI, the Bank will apply the option to classify them as FVOCI. Therefore, the application of IFRS 9 will not
have an impact on initial adoption. However, in accordance with the requirements of the standard, gains and
losses recognized in OCI will not be recycled through the profit and loss account on derecognition of these
securities.
The remaining listed equity securities will be measured at FVTPL. The AFS reserve related to those securities is
currently part of Surplus on Revaluation of Assets and will be reclassified to retained earnings hence, there will
be no impact on overall equity.

Unquoted equity securities are required to be measured at fair value under IFRS 9. However, the SBP has
allowed banks to carry these investments under the current Prudential Regulations, i.e. at the lower of cost and
break-up value, till accounting periods beginning on or after January 01, 2024.
Debt securities and Loans and advances
Debt securities currently classified as AFS and those passes SPPI test, are expected to be measured at fair
value through OCI under IFRS 9 as the Bank’s business model is to hold the assets to collect contractual cash
flows, but also to sell those investment. Debt securities currently classified as HTM and those passes SPPI test
are expected to be measured at amortized costs under IFRS 9 as the Group business model is to hold the
assets to collect contractual cash flows.
Cashflows of certain debt instruments classified in AFS or / and HTM categories, do not expect to give risk to
cash flows representing solely payments of principal and interest and accordingly, these would be measured at
fair value through profit and loss.
Impairment
The impairment requirements apply to financial assets measured at amortised cost and FVOCI (other than
equity instruments), lease receivables, and certain loan commitments and financial guarantee contracts. At
initial recognition, an impairment allowance (or provision in the case of commitments and guarantees) is
required for expected credit losses (‘ECL’) resulting from default events that are possible within the next 12
months (‘12-month ECL’). In the event of a significant increase in credit risk, an allowance (or provision) is
required for ECL resulting from all possible default events over the expected life of the financial instrument
(‘lifetime ECL’). Financial assets where 12-month ECL is recognised are in ‘stage 1’; financial assets that are
considered to have experienced a significant increase in credit risk are in ‘stage 2’; and financial assets for
which there is objective evidence of impairment, so are considered to be in default or otherwise credit impaired,
are in ‘stage 3’.
The assessment of credit risk and the estimation of ECL are required to be unbiased and probability-weighted,
and should incorporate all available information which is relevant to the assessment including information about
past events, current conditions and reasonable and supportable forecasts of economic conditions at the
reporting date. In addition, the estimation of ECL should take into account the time value of money.
Based on the requirement of IFRS 9 and SBP’s IFRS 9 application instructions, the Bank has performed an ECL
assessment taking into account the key elements such as assessment of SCIR, Probability of Default, Loss
Given Default and Exposure at Default. These elements are described below:
- PD: The probability that a counterparty will default, calibrated over the 12 months from the reporting date
(stage 1) or over the lifetime of the product (stage 2) and incorporating forward looking information.
- LGD: An estimate of the loss incurred on a facility upon default by a customer. LGD is calculated as the
difference between contractual cash flows due and those that the Bank expects to receive, including from
the liquidation of any form of collateral. It is expressed as a percentage of the exposure outstanding on the
date of classification of an obligor.
- EAD: the expected balance sheet exposure at the time of default, incorporating expectations on
drawdowns, amortisation, pre-payments and forward-looking information where relevant.
For the purpose of calculation of ECL, the Bank has used 5 years data till December 31 2023 and going
forward, one more year’s data shall be included until the Bank has at least 10 years data. For calculating ECL,
the Bank shall classify its financial assets under three following categories:

a) Stage 1: Performing Assets: Financial assets where there has not been a SICR since initial recognition,
the Bank shall recognize an allowance based on the 12-month ECL.
b) Stage 2: Under-Performing Assets: For financial assets where there has been a SICR since initial
recognition, but which are not credit impaired, the Bank shall recognize an allowance based on lifetime ECL
for all exposures categorized in this stage based on the actual maturity profile.
c) Stage 3: Non-Performing Assets: For financial assets which have objective evidence of impairment at the
reporting date, the Bank shall recognize ECL on these financial assets using the higher off approach, which
means that lifetime ECL computed under IFRS 9 is compared with regulatory provision required as per
Prudential regulations
As required by the Application Instructions, financial assets may be reclassified out of stage 3 if they meet the
requirements of Prudential Regulations (PR) issued by SBP. Financial assets in stage 2 may be reclassified to
stage 1 if the conditions that led to a SICR no longer apply.
Significant increase in credit risk (SICR)
A SICR is assessed in the context of an increase in the risk of a default occurring over the life of the financial
instrument when compared to that expected at the time of initial recognition. It is not assessed in the context of
an increase in the ECL. The Bank uses a number of qualitative and quantitative measures in assessing SICR.
Quantitative measures relate to deterioration of Obligor Risk Ratings (ORR) or where principal and / or interest
payments are 60 days or more past due. Qualitative factors include unavailability of financial information and
pending litigations.
Based on the level of increase in credit risk, the Bank shall calculate 12 month ECL for assets which did not
have a SICR i.e., Stage 1 or a lifetime expected loss for the life of the asset (for assets which demonstrated a
SICR) i.e., Stage 2.
At every reporting date, the Bank shall assess whether there has been a SICR since the initial recognition of the
asset. If there is a SICR, the asset must be assigned to the appropriate stage of credit impairment (Stage 2 or
3).
Under the SBP’s instructions, credit exposure (in local currency) guaranteed by the Government and
Government Securities are exempted from the application of ECL Framework. Moreover, until implementation of
IFRS 9 has stabilized, Stage 1 and stage 2 provisions would be made as per IFRS 9 ECL and stage 3 provision
would be made considering higher of IFRS 9 ECL or provision computed under existing PRs’ requirements.
Presentation and disclosure
IFRS 9 also introduces expanded disclosure requirements and changes in presentation which will be
incorporated as per the SBP’s revised format.
Loan / financing related fee
Loan origination / commitment fees that are regarded as compensation to the lender for an ongoing involvement
with the acquisition of a financial instrument would be recognized over the life of the related loan. However, if
the commitment expires without the lender making the loan, the fee would be recognised as revenue as earned.
Impact of adoption of IFRS 9
The actual impact of adopting IFRS 9 on the Bank’s financial statements in the year 2024 may not be accurately
estimated because it will be dependent on the financial instruments that the Bank would hold during 2024 and
economic conditions at that time as well as accounting elections and judgements that it will make in future.
Nevertheless, the Bank has performed a preliminary assessment of the potential impact of adoption of IFRS 9
based on its statement of financial position as at December 31, 2023.

Based on the bank’s assessment, the IFRS 9 requirements are expected to have the following impact on the
classification and measurement of its financial assets and financial liabilities:
1. Debt instruments amounting to Rs. 15,987 million have been reclassified from Available for Sale to Fair Value
through Profit or Loss.
2. Equity instruments amounting to Rs. 28,507 million have been reclassified from Available for Sale to Fair Value
through Profit or Loss.
Impairment
The total estimated adjustment (net of tax) of the adoption of IFRS 9 on the opening balance of the Bank's
equity at January 01, 2024 is a decrease of approximately Rs. 8,177 million, representing;
- a decrease of Rs. 13,808 million in equity due to increase in ECL.
- an increase of Rs. 5,631 million in equity resulting from reclassification of investments as mentioned above.
Impact on regulatory capital
The implementation of IFRS 9 is expected to result in reduced regulatory capital of the Bank, which is likely to
reduce their lending capacity and ability to support their clients. In order to mitigate the impact of expected credit
loss (ECL) models on capital, SBP has determined that it may be appropriate for the Financial Institutions (FIs)
to follow a transitional arrangement for the impact on regulatory capital from the application of ECL accounting.
Annexure B of the 'Application Instructions' issued by SBP vide BPRD Circular No.3 of 2022 dated July 05,
2022, have detailed the transitional arrangement.
The transitional arrangement must apply only to provisions for stage 1 and 2 financial assets. The transitional
arrangement must only adjust CET1 capital. Where there is a reduction in CET1 capital due to new provisions,
net of tax effect, upon adoption of an ECL accounting model, the decline in CET1 capital (the “transitional
adjustment amount”) must be partially included (i.e. added back) to CET1 capital over the “transition period” of
five years.
The impact of adoption of IFRS 9 on the capital ratios of the Group are as follows:
As per adopted As per current

IFRS 9 ARS

CET1 available to meet buffers (as a percentage of risk weighted assets) 10.17% 10.39%
4. BASIS OF MEASUREMENT
These consolidated financial statements have been prepared under the historical cost convention except for
revaluation of land and buildings and non-banking assets acquired in satisfaction of claims which are stated at
revalued amount and certain investments and derivative financial instruments that are carried at fair value. In
addition, obligations in respect of defined benefit plan are carried at the present values.

5. MATERIAL ACCOUNTING POLICIES
The accounting policy adopted in preparation of these consolidated financial statements are consistent with
those of the previous financial year.
5.1 Business Combination
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a
business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair
values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the
acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-
related costs are recognised in profit and loss account as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair
value.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-
controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the
acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the
liabilities assumed. If, after reassessment, net of the acquisition-date amounts of the identifiable assets acquired
and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling
interests in the acquiree and the fair value of the acquirer's previously held interest in the acquiree (if any), the
excess is recognised immediately in profit and loss account as a bargain purchase gain.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share
of the Group's net assets in the event of liquidation is measured at fair value at the date of the acquisition.
When a business combination is achieved in stages, the Group's previously held equity interest in the acquiree
is remeasured to fair value at the acquisition date (i.e. the date when the Group obtains control) and the
resulting gain or loss, if any, is recognised in profit and loss account.
5.2 Goodwill
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the
subsidiary company.
For the purposes of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or
entities of cash-generating units) that is expected to benefit from the synergies of the combination.
A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more
frequently when there is indication that the unit may be impaired. If the recoverable amount of the cash-
generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying
amount of any goodwill allocated to the unit and then to the other assets of the unit on a pro-rata basis based on
the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit
and loss account. An impairment loss recognised for goodwill is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the
determination of the profit or loss on disposal.
5.3 Cash and cash equivalents
Cash and cash equivalents include cash and balances with treasury banks, balances with other banks and call
money lendings, less call borrowings and overdrawn nostro accounts.

5.4 Investments
Investments other than those categorised as held-for-trading are initially recognised at fair value which includes
transactions costs associated with the investments. Investments classified as held-for-trading are initially
recognised at fair value, and transaction costs are expensed in the profit and loss account.
All regular way purchases / sales of investments are recognised on the trade date, i.e., the date the Group
commits to purchase / sell the investments. Regular way purchases or sales of investments require delivery of
securities within the time frame generally established by regulation or convention in the market place.
The Group has classified its investment portfolio, except for investments in subsidiaries, associates and joint
ventures into ‘held-for-trading’, ‘held-to-maturity’ and ‘available-for-sale’ as follows:
- Held-for-trading – These are securities which are acquired with the intention to trade by taking advantage of
short-term market / interest rate movements and are to be sold within ninety (90) days. These are carried at
market value, with the related unrealized gain / (loss) on revaluation being taken to profit and loss account.
- Held-to-maturity – These are securities with fixed or determinable payments and fixed maturity that are held
with the intention and ability to hold to maturity. These are carried at amortised cost.
- Available-for-sale – These are investments that do not fall under the held-for-trading or held-to-maturity
categories. These are carried at market value except in case of unquoted securities where market value is
not available, which are carried at cost less provision for diminution in value, if any. Surplus / (deficit) on
revaluation is taken to ‘surplus / (deficit) on revaluation of assets’ account shown in equity. Provision for
diminution in value of investments in respect of unquoted shares is calculated with reference to break-up
value of the same. On derecognition or impairment in quoted available-for-sale investments, the cumulative
gain or loss previously reported as ‘surplus / (deficit) on revaluation of assets' in equity is included in the
profit and loss account for the year.
- Provision for diminution in value of investments in unquoted debt securities is calculated as per the SBP's
Prudential Regulations.
Held-for-trading and quoted available-for-sale securities are marked to market with reference to ready quotes on
Reuters page or MUFAP (PKRV / PKISRV / PKFRV) or the Stock Exchanges, as the case may be.
Associates – Associates are all entities over which the Group has significant influence but not control, generally
accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are
accounted for under the equity method of accounting. However, in case where associates are considered as
fully impaired and financial statements are not available, these investments are stated at cost less provision.
Under the equity method, the Group’s share of its associates’ post-acquisition profits or losses is recognized in
the consolidated profit and loss account, its share of post-acquisition movements in reserves is recognized in
reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the
investment. When the Group’s share of losses in an associate equals or exceeds its interest in the associate,
including any other unsecured receivables, the Group does not recognize further losses, unless it has incurred
obligations or made payments on behalf of the associate.
Joint venture - The Group has interests in joint venture which is jointly controlled entity. A joint venture is
contractual arrangement whereby two or more parties undertake in economic activity that is subject to a joint
control and includes a jointly controlled entity that involves the establishment of separate entity in which each
venturer has an interest. The Group accounts for its interest in joint venture using the equity method of
accounting.

The carrying values of investments are reviewed for impairment when indications exist that the carrying value
may exceed the estimated recoverable amount. Provision is made for impairment in value, if any.
5.5 Repurchase and resale agreements
Securities sold with a simultaneous commitment to repurchase at a specified future date (repos) continue to be
recognised in the statement of financial position and are measured in accordance with accounting policies for
investment securities. The counterparty liability for amounts received under these agreements is included in
borrowings. The difference between sale and repurchase price is treated as mark-up / return / interest expense
and accrued over the life of the repo agreement using effective yield method.
Securities purchased with a corresponding commitment to resell at a specified future date (reverse repos) are
not recognised in the statement of financial position, as the Group does not obtain control over the securities.
Amounts paid under these agreements are included in lendings to financial institutions. The difference between
purchase and resale price is treated as mark-up / return / interest income and accrued over the life of the
reverse repo agreement using effective yield method.
5.6 Derivative financial instruments
Derivative financial instruments are initially recognised at fair value on the dates on which the derivative
contracts are entered into and are subsequently re-measured at fair value using appropriate valuation
techniques. All derivative financial instruments are carried as assets when fair value is positive and liabilities
when fair value is negative. Any change in the fair value of derivative instruments during the year is taken to the
profit and loss account.
5.7 Financial instruments
All financial assets and financial liabilities are recognized at the time when the Group becomes a party to the
contractual provisions of the instrument. A financial asset is derecognised where (a) the rights to receive cash
flows from the asset have expired; or (b) the Group has transferred its rights to receive cash flows from the
asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party
under a ‘pass-through' arrangement; and either (i) the Group has transferred substantially all the risks and
rewards of the asset, or (ii) the Group has neither transferred nor retained substantially all the risk and rewards
of the asset, but has transferred control of the asset. A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires. Any gain or loss on derecognition of the financial assets
and financial liabilities is taken to profit and loss account.
5.8 Advances
Advances are stated net of specific and general provisions. Provisions are made in accordance with the
requirements of Prudential Regulations issued by the SBP and charged to the profit and loss account. These
regulations prescribe a time based criteria (as supplemented by subjective evaluation of advances by the
Group) for classification of non-performing loans and advances and computing provision there against. Such
regulations also require the Group to maintain general provision against consumer and Small and Medium
Enterprises (SME) advances at specified percentage of such portfolio. General provision for loan losses of
overseas branches is made as per the requirements of the respective central banks. Advances are written off
where there are no realistic prospects of recovery.The amounts so written off is a book entry and does not
necessarily prejudice the Group's right of recovery against the customers. The Group determines write-offs in
accordance with the criteria as prescribed by SBP vide BPRD circular no. 06 dated June 05, 2007.
5.8.1 Islamic financing and related assets
Under Murabaha financing, funds disbursed for the purchase of goods are recorded as advance against
Murabaha finance and the financing is recorded at the deferred sale price. Goods purchased but remaining
unsold at the statement of financial position date are recorded as inventories.

Assets given on Ijarah are stated at cost less accumulated depreciation and accumulated impairment losses, if
any. Ijarah assets are depreciated on a reducing balance basis over the term of the Ijarah after taking into
account the estimated residual value. Impairment of Ijarah assets is recognized in line with the Prudential
Regulations or upon the occurrence of an impairment event which indicates that the carrying value of the Ijarah
asset may exceed its recoverable amount.
In Running Musharakah, the Group and the customer enter a Musharakah agreement where the Group agrees
to finance the operating activities of the customer's business and share in the profit or loss in proportion to an
agreed ratio at an agreed frequency.
Under Diminishing Musharakah financing, the Group creates joint ownership with the customer over the tangible
assets to fulfill capital expenditure / project requirements. The Group receives periodic payments from the
customer against the gradual transfer of its share of ownership to the customer.
In Istisna transactions, the Group finances the cost of goods manufactured by the customer. Once the goods
are manufactured, these are sold by the customer as an agent of the Group to recover the cost plus the agreed
profit.
Under Tijarah, the Group purchases the finished goods from the customer against payment, takes possession
and appoint customer as an agent to sell these goods to ultimate buyer on deferred payment basis. Profit is
recognized on accrual basis over the period of transaction.
Wakalah is an agency contract in which Group provides funds to the customer who invests it in a Shariah
compliant manner.
In Musawamah financing, the Group purchases the goods and after taking the possession, sells them to the
customer either in spot or credit transaction, without disclosing the cost.
5.9 Fixed assets and depreciation
5.9.1 Property and equipment
5.9.1.1 Owned assets
Property and equipment except land and buildings are stated at cost less accumulated depreciation and
accumulated impairment losses, if any. Land is stated at revalued amount. Buildings are stated at revalued
amount less accumulated depreciation and impairment, if any. The cost and the accumulated depreciation of
property and equipment of foreign branches include exchange differences arising on currency translation at the
year-end rates. Depreciation is charged to profit and loss account applying the straight line method except
buildings, which are depreciated on diminishing balance method at the rates stated in note 12.2. Depreciation
on additions is charged from the month in which the assets are available for use and no depreciation is charged
for the month the assets are disposed off.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is
derecognised. All other repairs and maintenance are charged to the profit and loss account during the period in
which they are incurred.
Assets are derecognised when disposed off or when no future economic benefits are expected from its use or
disposal. Gains and losses on disposal of property and equipment are included in profit and loss account.
The assets' residual values and useful lives are reviewed annually, and adjusted if appropriate, at statement of
financial position date.

Land and buildings' valuations are carried out by professionally qualified valuers with sufficient regularity to
ensure that their carrying amounts do not differ materially from their fair value.
- Any revaluation increase arising on the revaluation of such assets is recognised in the statement of
comprehensive income and accumulated in equity, except to the extent that it reverses a revaluation
decrease for the same asset previously recognised in profit and loss account, in which case the increase is
credited to profit and loss account to the extent of the decrease previously expensed. A decrease in the
carrying amount arising on the revaluation of such assets is recognised in profit and loss account to the
extent that it exceeds the balance, if any, held in “Surplus on Revaluation of Fixed Assets” relating to a
previous revaluation of that asset.
- Depreciation on assets which are revalued is determined with reference to the value assigned to such
assets on revaluation and depreciation charge for the year is taken to the profit and loss account.
- An amount equal to incremental depreciation for the year net of associated deferred tax is transferred from
“Surplus on Revaluation of Fixed Assets account” to unappropriated profit through statement of changes in
equity to record realization of surplus to the extent of the incremental depreciation charge for the year.
- On the subsequent sale or retirement of a revalued asset, the attributable revaluation surplus remaining in
the revaluation reserve is transferred directly to unappropriated profit.
5.9.1.2 Leased assets (as lessee)
Assets subject to finance lease are accounted for by recording the asset and the related liability. These are
recorded at lower of fair value and the present value of minimum lease payments at the inception of lease and
subsequently stated net of accumulated depreciation. Depreciation is charged on the straight line basis at rates
disclosed in note 12.2. Financial charges are allocated over the period of lease term so as to provide a constant
periodic rate of financial charge on the outstanding liability.
5.9.1.3 Ijarah (as lessor)
Assets leased out under ‘Ijarah' are stated at cost less accumulated depreciation and accumulated impairment
losses, if any. Assets under Ijarah are depreciated over the period of lease term. However, in the event the
asset is expected to be available for re-Ijarah, depreciation is charged over the economic life of the asset using
straight line basis.
Ijarah income is recognised on a straight line basis over the period of Ijarah contract.
5.9.2 Capital work-in-progress
Capital work-in-progress is stated at cost less accumulated impairment losses, if any. These are transferred to
specific assets as and when assets are available for use.
5.9.3 Impairment
The carrying values of fixed assets are reviewed for impairment when events or changes in circumstances
indicate that the carrying values may not be recoverable. If any such indication exists and where the carrying
values exceed the estimated recoverable amounts, fixed assets are written down to their recoverable amounts.
The resulting impairment loss is taken to profit and loss account except for impairment loss on revalued assets
which is adjusted against the related revaluation surplus to the extent that the impairment loss does not exceed
the surplus on revaluation of assets. Where impairment loss subsequently reverses, the carrying amount of the
asset is increased to the revised recoverable amount but limited to the extent of the amount which would have
been determined had there been no impairment. Reversal of impairment loss is recognized as income in profit
and loss account.

5.10 Lease liability and right-of-use assets
The lease liabilities are initially measured at the present value of lease payments that includes:
- fixed payments (including in-substance fixed payments), less any lease incentives receivable;
- variable lease payment that are based on an index or a rate as at the commencement date;
- amounts expected to be payable by the lessee under residual value guarantees, if any;
- the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
- payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
The lease payments are to be discounted using the incremental borrowing rate being the rate that the Group
would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic
environment with similar terms and conditions.
On initial recognition Right-of-use assets are measured at cost comprising the following:
- the amount of the initial measurement of lease liability;
- any lease payments made at or before the commencement date less any lease incentives received;
- any initial direct costs incurred; and
- an estimate of restoration costs.
The Group leases various offices / branches for the purpose of its operational activities. Rental contracts are
typically made for fixed periods of 3 to 10 years. Lease terms are negotiated on an individual basis and contain
a wide range of different terms and conditions. The lease agreements do not impose any covenants, but leased
assets may not be used as security for borrowing purposes.
5.11 Intangible assets
Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses, if any.
The cost and the accumulated amortisation of intangible assets of foreign branches include exchange
differences arising on currency translation at the year-end rates. Amortisation is charged to profit and loss
account applying the straight-line method at the rates stated in note 13. Amortisation on addition is charged
from the month in which the assets are available for use and no amortisation is charged in the month the
intangible assets are disposed off. The estimated useful life and amortisation method are reviewed at the end of
each annual reporting period, with the effect of any changes in estimate being accounted for on a prospective
basis.
Intangible assets with indefinite useful life are carried at cost less impairment losses, if any.
5.12 Non-banking assets acquired in satisfaction of claims
In accordance with the requirements of the ‘Regulations for Debt Property Swap' (the regulations) issued by
SBP vide its BPRD Circular No. 1 of 2016, dated January 1, 2016, the non-banking assets acquired in
satisfaction of claims are carried at revalued amounts less accumulated depreciation. These assets are
revalued by professionally qualified valuers with sufficient regularity to ensure that their net carrying value does
not differ materially from their fair value. A surplus arising on revaluation is credited to the 'surplus on
revaluation of assets' account and any deficit arising on revaluation is taken to the profit and loss account
directly. Legal fees, transfer costs and direct costs of acquiring title to property is charged to profit and loss
account and not capitalized. Depreciation on non-banking assets acquired in satisfaction of claims is charged to
the profit and loss account on the same basis as depreciation charged on the Group's owned fixed assets.

5.13 Deposits and their cost
Deposits are recorded at the fair value of proceeds received.
Deposit costs are recognised as an expense in the period in which these are incurred using effective yield
method.
5.14 Taxation
5.14.1 Current
Provision of current taxation is based on taxable income for the year determined in accordance with the
prevailing laws of taxation on income earned for local as well as foreign operations, as applicable to the
respective jurisdictions. The charge for the current tax also includes adjustments wherever considered
necessary relating to prior years, arising from assessments framed during the year.
5.14.2 Deferred
Deferred tax is provided on all temporary differences at the reporting date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses, to the extent
that it is probable that taxable profits will be available against which the deductible temporary differences and
unused tax losses can be utilised. Deferred tax is not recognised on differences relating to investment in
subsidiaries, branches and associates and interest in joint arrangments to the extent the deductible temporary
difference probably will not reverse in the foreseeable future.
The carrying amount of deferred tax assets are reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit or deductable temporary differences will be available to allow
all or part of the deferred tax asset to be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Deferred tax relating to gain / loss recognized on surplus on revaluation of assets is charged / credited to such
account.
5.15 Employee benefits
5.15.1 Defined benefit plans
The Bank operates an approved funded pension scheme, an un-funded post retirement medical benefits
scheme and an un-funded benevolent scheme for its eligible employees. The Group also operates an un-
funded gratuity scheme for its eligible contractual employees. An actuarial valuation of all defined benefit
schemes is conducted every year. The valuation uses the Projected Unit Credit method. Remeasurements of
the net defined benefit liability / assets which comprise actuarial gains and losses, return on plan assets
(excluding interest) and the effect of asset ceiling (if any, excluding interest) are recognized immediately in other
comprehensive income. Past-service costs are recognized immediately in profit and loss account when the plan
amendment occurs.
5.15.2 Other employee benefits
Employees' compensated absences
The Group also makes provision in the financial statements for its liability towards compensated absences. This
liability is estimated on the basis of actuarial advice under the Projected Unit Credit method.

5.15.3 Retirement and other benefit obligations
In respect of CJSC Subsidiary Bank of NBP in Kazakhstan (CJSC)
The CJSC withholds amounts of pension contributions from employee salaries and pays them to state pension
fund. The requirements of the Kazakhstan’s legislation state pension system provides for the calculation of
current payments by the employer as a percentage of current total payments to staff. This expense is charged in
the period the related salaries are earned. Upon retirement all retirement benefit payments are made by
pension funds selected by employees.
5.16 Revenue recognition
Income on loans and advances and debt security investments are recognized on a time proportion basis that
takes into account effective yield on the asset. In case of advances and investments classified under the
Prudential Regulations, interest / mark-up is recognized on receipt basis.
Interest / mark-up on rescheduled / restructured advances and investments is recognized in accordance with
the Prudential Regulations of SBP.
Fee, brokerage and commission income other than commission on letter of credit and guarantees and
remuneration for trustee services are recognized upon performance of services.
Commission on letters of credit and guarantees is recognized on time proportion basis.
Dividend income on equity investments and mutual funds is recognized when right to receive is established.
Premium or discount on debt securities classified as held-for-trading, available-for-sale and held-to-maturity

securities is amortised using the effective interest method and taken to profit and loss account.
Gains and losses on disposal of investments and fixed assets are dealt with through the profit and loss account
in the year in which they arise.
Income from lease financing is accounted for using the financing method. Under this method, the unearned
lease income (defined as the sum of total lease rentals and estimated residual value less the cost of the leased
assets) is deferred and taken to income over the term of the lease so as to produce a constant periodic rate of
return on the outstanding net investment in the lease. Gains or losses on termination of lease contracts are
recognized through the profit and loss account when these are realized. Unrealized lease income and other
fees on classified leases are recognized on a receipt basis.
5.17 Net investment in finance lease
Leases where the group transfers substantially all the risk and rewards incidental to ownership of the assets to
the lessee are classified as finance leases. Net investment in finance lease is recognised at an amount equal to
the aggregate of present value of minimum lease payment including any guaranteed residual value and
excluding unearned finance income, write-offs and provision for doubtful lease finances, if any.
5.18 Foreign currencies translation
The Group's financial statements are presented in Pak Rupees (Rs.) which is the Group's functional and
presentation currency.
Foreign currency transactions are converted into Rupees applying the exchange rate at the date of the
respective transactions. Monetary assets and liabilities in foreign currencies and assets / liabilities of foreign
branches are translated into Rupees at the rates of exchange prevailing at the statement of financial position
date. Forward foreign exchange contracts are valued at the rates applicable to their respective maturities. All
gains or losses on dealing in foreign currencies are taken to the profit and loss account.

Profit and loss account balances of foreign branches and subsidiaries are translated at average exchange rate
prevailing during the year. Gains and losses on translation are included in the profit and loss account except
gains / losses arising on translation of net assets of foreign branches and subsidiaries, which are credited to the
statement of comprehensive income.
Statement of financial position balances of foreign branches and subsidiaries are translated at exchange rate
prevailing at statement of financial position date. Gains and losses on translation are included in the profit and
loss account except gains / losses arising on translation of net assets of foreign branches and subsidiaries,
which is credited to the statement of comprehensive income.
Commitments for outstanding forward foreign exchange contracts are disclosed in these consolidated financial
statements at committed amounts. Contingent liabilities / commitments for letters of credit and letters of
guarantee denominated in foreign currencies are expressed in Rupee terms at the rates of exchange prevailing
at the statement of financial position date.
5.19 Provision for off balance sheet obligations
Provision for guarantees, claims and other off balance sheet obligations is made when the Group has legal or
constructive obligation as a result of past events, it is probable that an outflow of resources will be required to
settle the obligation and a reliable estimate of amount can be made. Charge to profit and loss account is stated
net of expected recoveries.
5.20 Off setting
Financial assets and financial liabilities are only set off and the net amount is reported in the consolidated
financial statements when there is a legally enforceable right to set off and the Group intends either to settle on
a net basis, or to realize the assets and to settle the liabilities simultaneously.
5.21 Fiduciary assets
Assets held in a fiduciary capacity are not treated as assets of the Group in the statement of financial position.
5.22 Dividend and other appropriations
Dividend and other appropriation to reserves, except appropriations which are required by the law, are
recognised in the Group's financial statements in the year in which these are approved.
5.23 Earnings per share
The Group presents basic and diluted earnings per share (EPS) for its shareholders. Basic EPS is calculated by
dividing the profit or loss attributable to ordinary shareholders of the Group by the weighted average number of
ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss
attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the
effects of all dilutive potential ordinary shares, if any. There were no dilutive potential ordinary shares in issue at
December 31, 2023.
5.24 Bai Muajjal
Bai Muajjal transactions represent sales of Sukuks on a deferred payment basis and are shown in lendings to
financial institutions except for transactions undertaken directly with the Government of Pakistan which are
disclosed as investments.
The difference between the deferred payment amount receivable and the carrying value at the time of sale is
accrued and recorded as income over the life of the transaction.

5.25 Acceptances
Acceptances comprise undertakings by the Bank to pay bill of exchange drawn on customers. Acceptances are
recognised as financial liability in the statement of financial position with a contractual right of reimbursement
from the customer as a financial asset. Therefore, commitments in respect of acceptances have been
accounted for as on balance sheet financial assets and financial liabilities.
5.26 Segment reporting
A segment is a distinguishable component of the Group that is subject to risks and rewards that are different
from those of other segments. A business segment is one that is engaged either in providing certain products or
services, where as a geographical segment is one engaged in providing certain products or services within a
particular economic environment. Segment information is presented as per the Group’s functional and
management reporting structure.
Business segments
The Group's primary segment reporting is based on the following business segments:
I. Retail Banking Group includes retail lending and deposits, banking services, cards and branchless
banking.
II. Inclusive Development Group consists of loans to individuals, agriculture, SME, commodity and
commercial customers.
III. Corporate and Investment Banking Group offers a wide range of financial services to medium and large
sized public and private sector entities. These services include, providing and arranging tenured financing,
corporate advisory, underwriting, cash management, trade products, corporate finance products and
customer services.
IV. Treasury includes fixed income, equity, foreign exchange, credit, funding, own position securities, lendings
and borrowings and derivatives for hedging and market making.
V. International Financial Institution and Remittance Group includes the results of all international
branches, correspondent banking business and global remittances. This represents Group’s operations in
13 countries including Pakistan and 18 branches including one branch in export processing zone in
Pakistan.
VI. Aitemaad and Islamic Banking Group provides shariah compliant services to customers including loans,
deposits and other transactions.
VII. Head Office / Others includes the head office related activities and other functions which cannot be
classified in any of the above segments.
Geographical segments
The Group is managed along the following geographic lines for monitoring and reporting purposes:
I. Pakistan (including branch in Export Processing Zone)
II. Asia Pacific (including South Asia)
III. Europe
IV. United States of America
V. Middle East

5.27 Accounting estimates and judgments
The preparation of the consolidated financial statements in conformity with approved accounting and reporting
standards as applicable in Pakistan requires the use of certain critical accounting estimates. It also requires
management to exercise its judgment in the process of applying the Group’s accounting polices. The estimates,
judgments and associated assumptions used in the preparation of these consolidated financial statements are
based on historical experience and other factors, including expectations of future events that are believed to be
reasonable under the circumstances. The key areas of estimates and judgments in relation to these
consolidated financial statements are as follows:
a) Provision against non-performing loans and advances
The Group reviews its loan portfolio to assess amount of non-performing loans and determine provision
required there against on a quarterly basis. While assessing this requirement, various factors including the
past dues, delinquency in the account, financial position and future business / financial plan of the
borrower, value of collateral held and requirements of Prudential Regulations are considered. The Group
also considers the effect of Forced Sale Value (FSV) of collaterals in determining the amount of provision,
however, no benefit of FSV of collateral has been taken during the year in determining provisioning amount.
General provision for loan losses of overseas branches is made as per the requirements of the respective
central banks.
The amount of general provision against domestic consumer and SME advances is determined in
accordance with the relevant Prudential Regulations and SBP directives.
In addition, the Group has also made general provision in respect of its corporate portfolio on prudent
basis. This general provision is in addition to the requirements of Prudential Regulations.
b) Fair value of derivatives
The fair values of derivatives which are not quoted in active markets are determined by using valuation
techniques. The valuation techniques take into account the relevant interest and exchange rates over the
term of the contract.
c) Impairment of available-for-sale investments
The Group considers that available-for-sale equity investments and mutual funds are impaired when there
has been a significant or prolonged decline in the fair value below its cost except for investments where
relaxation has been allowed by SBP. This determination of what is significant or prolonged requires
judgment. In addition, impairment may be appropriate when there is evidence of deterioration in the
financial health of the investee, industry and sector performance.
Further the Group has developed internal criteria according to which a decline of 30% in the market value
of any scrip below its cost shall constitute as a significant decline and where market value remains below
the cost for a period of one year shall constitute as a prolonged decline."
d) Held-to-maturity investments
The Group follows the guidance provided in the SBP circulars on classifying non-derivative financial assets
with fixed or determinable payments and fixed maturity as held-to-maturity. In making this judgment, the
Group evaluates its intention and ability to hold such investments till maturity.
e) Income taxes
In making the estimates for current and deferred taxes, the management looks at the income tax law and

the decisions of appellate authorities on certain issues in the past. There are certain matters where the
Group’s view differs with the view taken by the income tax department and such amounts are shown as
contingent liability.
f) Fixed asset and intangible assets, revaluation, depreciation and amortization
In making estimates of the depreciation / amortization method, the management uses method which
reflects the pattern in which economic benefits are expected to be consumed by the Group. The method
applied is reviewed at each financial year end and if there is a change in the expected pattern of
consumption of the future economic benefits embodied in the assets, the method is changed to reflect the
change in pattern.
The Group also revalues its properties on a periodic basis. Such revaluations are carried out by
independent valuer and involves estimates / assumptions and various market factors and conditions.
g) Employees' benefit plans
The liabilities for employees' benefits plans are determined using actuarial valuations. The actuarial
valuations involve assumptions about discount rates, expected rates of return on assets, future salary
increases, future inflation rates and future pension increases as disclosed in note 40. Due to the long term
nature of these plans, such estimates are subject to significant uncertainty.
h) Provision against contingencies
Provision against contingencies is determined based on the management judgement regarding the
probability of future outflows of resources embodying economic benefits to settle an obligation arising from
past events.
i) Determination of control over investees
The Group's management applies its judgement to determine whether the control exists over the investee
entities.
6. CLOSURE OF FOREIGN SUBSIDIARIES AND OPERATIONS
In line with SBP Governance Framework 2018, the Board of Directors (BoD) in its 302nd meeting held on
January 20 & 21, 2020 has accorded the approval of International Strategy. As per approved Strategy, the BoD
allowed closure of few locations which have already been closed in prior years except Azerbaijan (Baku),
Kyrgyzstan (Bishkek) and Kazakhstan (Almaty) are still in the process of closure. The Board of Directors in its
316th meeting held on January 06 & 11, 2021 has accorded its approval to scale down Bangladesh operations.
SBP also directed to close bank’s operations in Paris Branch. On the basis of these directives, the BoD in its
327th meeting held on January 17, 2022 accorded their approval.
Closure process at Central Asian locations have been delayed due to non-settlement of NPLs portfolio.
Operations at the following locations are under the process of closure. Tentative closure dates are also
mentioned there against.
S.No Name of International Locations Tentative Date of Closure

1 CJSC Subsidiary Bank of NBP in Almaty, Kazakhstan 31.03.2024
2 Bishkek Branch, Kyrgyzstan 31.03.2024
3 Baku Branch, Azerbaijan 31.03.2024
4 Paris Branch, France 31.03.2024


CJSC
Subsidiary
Bank of NBP Baku Bishkek Paris
Total
Particulars in Almaty (Azerbaijan) (Kyrgyzstan) (France)
(Kazakhstan)
(Subsidiary)
-------------------------------------------(Branches) -------------------------------------------
-----------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------
Total Assets 3,009,954 1,461,215 2,873,265 1,560,155 8,904,589

Total Liabilities 2,604 51,793 18,665 123,477 196,538
Profit / (Loss) for the year 271,965 (15,134) 234,426 (642,483) (151,226)
2023 2022
Note
------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------
7. CASH AND BALANCES WITH TREASURY BANKS
In hand:
Local currency 62,622,218 52,750,990

Foreign currency 9,747,256 7,436,911
72,369,474 60,187,901
With State Bank of Pakistan in:
Local currency current accounts 7.1 125,905,643 106,933,909

Foreign currency collection accounts 1,498,122 1,135,059
192,330,826 139,354,153
With other central banks in:

30,127,630 30,357,295
Prize bonds 627,552 326,962

295,455,482 230,226,311
7.1 This includes statutory liquidity reserves maintained with the SBP under Section 22 of the Banking Companies
Ordinance, 1962.
7.2 These represent mandatory reserves maintained in respect of foreign currency deposits under FE-25 scheme,
as prescribed by the SBP.
7.3 These balances pertain to the foreign branches and are held with central banks of respective countries. These
include balances to meet the statutory and regulatory requirements in respect of liquidity and capital
requirements of respective countries. The deposit accounts carry interest at the rate of 0% to 5.5% per annum
(2022: 0% to 4.5% per annum).

2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
8. BALANCES WITH OTHER BANKS
In Pakistan:
In current account 298,108 537,182
In deposit accounts 8.1 388,221 501,303
686,329 1,038,485
Outside Pakistan:
In current accounts 33,517,051 12,395,611
In deposit accounts 8.2 8,801,187 6,189,028
42,318,238 18,584,639
43,004,567 19,623,124
8.1 These include various deposits with banks and carry interest at the rates ranging from 6.00% to 12.70% per
annum (2022: 3.5% to 9.5% per annum).
8.2 These include various deposits with correspondent banks outside Pakistan and carry interest at the rates
ranging from 1.50% to 7.10% per annum (2022: 0% to 4% per annum).
2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
9. LENDINGS TO FINANCIAL INSTITUTIONS
Call / clean money lendings 9.1 9,723 9,723

Repurchase agreement lendings (Reverse Repo) 9.2 & 9.6 192,420,714 31,262,744
Letters of placement 9.3 174,150 174,150
9.4 192,604,587 31,446,617
Less: provision held against lendings to financial institutions 9.5 & 9.7 (174,150) (174,150)
Lendings to financial institutions - net of provision 192,430,437 31,272,467
9.1 This includes zero rate lending to a financial institution amounting to Rs. 9.7 million (2022: Rs. 9.7 million) which
is guaranteed by the SBP.
9.2 These carry mark-up at rates ranging from 21.00% to 22.95% per annum (2022: 16% to 16.5% per annum) with
maturities ranging from January 02, 2024 to January 05, 2024.
9.3 These are overdue placements and full provision has been made against these placements as at December 31,
2023.

2023 2022
------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------
9.4 Particulars of lending
In local currency 192,604,587 31,446,617

In foriegn currencies - -
192,604,587 31,446,617
9.5 Movement in provision held against lendings is as follows:

Reversal for the year - -
9.6 Securities held as collateral against lendings to financial institutions
2023 2022
Held by Further given Held by Further given

Total Total
Group as collateral Group as collateral
--------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------------------------
Market Treasury Bills 9,485,867 - 9,485,867 18,699,589 - 18,699,589

Pakistan Investment Bonds 182,934,847 - 182,934,847 12,563,155 - 12,563,155
Total 192,420,714 - 192,420,714 31,262,744 - 31,262,744
9.6.1 Market value of the securities under repurchase agreement lendings amounts to Rs. 192,518 million (2022: Rs.
31,027 million).
9.7 Category of classification
2023 2022
Classified Provision Classified Provision
Lending held Lending held
-------------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------
Domestic
Loss 174,150 174,150 174,150 174,150

Total 174,150 174,150 174,150 174,150

10. INVESTMENTS
292
Investments by type:
10.1
2023 2022
Cost / Provision Cost / Provision
Surplus / Carrying Surplus / Carrying
Amortised for Amortised for
(Deficit) Value (Deficit) Value
Cost diminution Cost diminution
Held-for-trading securities Note
----------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------------------------------------------------
Market Treasury Bills 23,341,720 - 7,673 23,349,393 22,269,343 - (2,665) 22,266,678
Pakistan Investment Bonds 14,665,019 - (37,878) 14,627,141 61,942,656 - (1,031,197) 60,911,459
Ijarah Sukuk Bonds 5,038,531 - (3,521) 5,035,010 - - - -
Ordinary Shares
Listed Companies 79,317 - (1,213) 78,104 424,708 - (20,939) 403,769
Mutual Fund Units 972,916 - 6,914 979,830 623,941 - (10,996) 612,945
Foreign Securities
46,794,390 - (28,025) 46,766,365 87,032,461 - (1,065,797) 85,966,664
Available-for-sale securities

Ijarah Sukuk Bonds 30,424,484 - (330,520) 30,093,964 20,518,238 - (339,589) 20,178,649
Ordinary Shares
Listed Companies 10.13 & 10.14 51,696,434 (11,638,688) 22,294,743 62,352,489 41,606,225 (10,159,936) 4,821,267 36,267,556
Preference Shares
Listed 1,448,472 (566,446) 161,771 1,043,797 1,448,472 (287,446) 209,451 1,370,477
NATIONAL BANK
Unlisted 558,284 (558,284) - - 558,284 (558,284) - -


Sukuk Bonds 53,152,317 (5,857,566) 355,100 47,649,851 52,146,989 (5,990,161) 1,047,326 47,204,154
PAKISTAN
2023 2022
(Deficit) Value (Deficit) Value
Cost diminution Cost diminution
Note
----------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------------------------------------------------
Foreign Securities
4,067,358,458 (19,111,102) 33,119,281 4,081,366,637 2,957,037,771 (17,464,945) (7,455,191) 2,932,117,635
ANNUAL REPORT 2023

Held-to-maturity securities 10.6.1

Market Treasury Bills 161,108 - - 161,108 29,519,190 - - 29,519,190
Pakistan Investment Bonds 213,116,482 - - 213,116,482 375,285,244 - - 375,285,244
Ijarah Sukuk Bonds 14,087,500 - - 14,087,500 13,130,709 - - 13,130,709
Foreign currency debt securities 4,288,988 - - 4,288,988 2,992,408 - - 2,992,408

Sukuk Bonds 404,585 (404,585) - - 404,585 (404,585) - -
Foreign Securities
273,355,727 (404,585) - 272,951,142 457,429,514 (404,585) - 457,024,929
Associates 10.9/10.10 /10.15 1,364,062 (533,442) - 830,620 1,127,609 (742,298) - 385,311
Joint Venture 10.12 12,259,541 - - 12,259,541 7,441,308 - - 7,441,308
Subsidiaries 10.16 1,245 (1,245) - - 1,245 (1,245) - -
Total Investments 4,401,133,423 (20,050,374) 33,091,256 4,414,174,305 3,510,069,908 (18,613,073) (8,520,989) 3,482,935,847
293
10.2 Investments by segments: 2023 2022
294
cost (Deficit) Value cost (Deficit) Value
diminution diminution
Note
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------------------------------------------

Ijarah Sukuks 49,550,515 - (334,041) 49,216,474 33,648,947 - (339,589) 33,309,358
4,227,026,874 - (33,632,963) 4,193,393,911 3,359,937,636 - (49,859,641) 3,310,077,995
Shares
Listed Companies 10.13 & 10.14 51,775,751 (11,638,688) 22,293,530 62,430,593 42,030,933 (10,159,936) 4,800,328 36,671,325
53,883,214 (12,087,639) 22,293,530 64,089,105 43,913,396 (10,587,887) 4,800,328 38,125,837

Listed 14,277,946 (130,027) (357,143) 13,790,776 14,962,715 (130,027) 335,083 15,167,771
Unlisted 39,278,956 (6,132,124) 712,243 33,859,075 37,588,859 (6,264,719) 712,243 32,036,383
53,556,902 (6,262,151) 355,100 47,649,851 52,551,574 (6,394,746) 1,047,326 47,204,154
Foreign Securities
Government securities
47,842,267 - 42,180,079 90,022,346 40,246,797 - 34,350,592 74,597,389
Preference shares
Listed 1,448,472 (566,446) 161,771 1,043,797 1,448,472 (287,446) 209,451 1,370,477
Unlisted 558,284 (558,284) - - 558,284 (558,284) - -
Investments in mutual funds 3,192,562 (41,167) 1,733,739 4,885,134 2,843,587 (41,167) 930,956 3,733,376
Associates 10.10
- Listed
First Credit and Investment Bank Limited 10.15 208,917 (30,429) - 178,488 210,771 (47,429) - 163,342
Land Mark Spinning Mills Limited 39,710 (39,710) - - 39,710 (39,710) - -
NATIONAL BANK
SG Allied Businesses Limited 218,534 (218,534) - - 218,534 (218,534) - -
Nina Industries Limited 49,060 (49,060) - - 49,060 (49,060) - -
Agritech Limited 10.8 - - - - - - - -
NBP Stock Fund 652,132 - - 652,132 413,825 (191,856) - 221,969
10.9 1,168,353 (337,733) - 830,620 931,900 (546,589) - 385,311
PAKISTAN
2023 2022
Cost / Provision Surplus / Carrying Cost / Provision Surplus / Carrying
cost (Deficit) Value cost (Deficit) Value
diminution diminution
Note
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------------------------------------------------------------------
- Unlisted
Pakistan Emerging Venture Limited 50,565 (50,565) - - 50,565 (50,565) - -

National Fructose Company Limited 6,500 (6,500) - - 6,500 (6,500) - -
National Assets Insurance Company Limited - - - - - - - -
Dadabhoy Energy Supply Company Limited 32,105 (32,105) - - 32,105 (32,105) - -
Pakistan Mercantile Exchange Limited 106,539 (106,539) - - 106,539 (106,539) - -
10.11 195,709 (195,709) - - 195,709 (195,709) - -
ANNUAL REPORT 2023

1,364,062 (533,442) - 830,620 1,127,609 (742,298) - 385,311
Joint Venture
United National Bank Limited 10.12 12,259,541 - - 12,259,541 7,441,308 - - 7,441,308
Subsidiaries
Cast-N-Link Products Limited 10.16 1,245 (1,245) - - 1,245 (1,245) - -
Total Investments 4,401,133,423 (20,050,374) 33,091,256 4,414,174,305 3,510,069,908 (18,613,073) (8,520,988) 3,482,935,847
2023 2022
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees
10.2.1 Investments given as collateral in '000)-----------------------------------------------------
The book value of investments given as collateral against borrowings is as follows:

2,064,472,106 1,826,206,763
295
Based on the Total
Number of Percentage of Country of financial Profit / (loss) comprehensive
296
Assets Liabilities Revenue
shares holding Incorporation statements after taxation income /
as at (loss)
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------------------------------------------
10.2.2 Associates
Listed
First Credit and Investment Bank Limited 20,000,000 30.77 Pakistan June 30, 2023 1,851,310 1,127,397 279,322 12,994 8,750
National Fibres Limited* 17,030,231 20.19 Pakistan N/A - - - - -
Land Mark Spinning Mills Limited 3,970,859 32.79 Pakistan June 30, 2023 131,498 254,116 - (12,327) (12,327)
SG Allied Businesses Limited 3,754,900 25.03 Pakistan June 30, 2022 1,233,803 552,420 14,247 (10,794) (9,407)
Nina Industries Limited 4,906,000 20.27 Pakistan N/A - - - - -
Agritech Limited 106,014,565 27.01 Pakistan December 81,470,499 69,486,319 17,296,183 (2,953,326) 8,228,387
31, 2022
NBP Stock Fund 31,347,444 4.24 Pakistan June 30, 2023 10,286,565 120,651 240,054 (333,261) (333,261)
Unlisted
Pakistan Emerging Venture Limited 12,500,000 33.33 Pakistan June 30, 2022 478 404 56 (385) (385)
National Fructose CompanyLimited 1,300,000 39.50 Pakistan N/A - - - - -
Venture Capital FundManagement* 33,333 33.33 Pakistan N/A - - - - -
Kamal Enterprises Limited * 11,000 20.37 Pakistan N/A - - - - -
Mehran Industries Limited* 37,500 32.05 Pakistan N/A - - - - -
Tharparkar Sugar Mills Limited* 2,500,000 21.52 Pakistan N/A - - - - -
Youth Investment Promotion Society* 644,508 25.00 Pakistan N/A - - - - -
Dadabhoy Energy SupplyCompany Limited 9,900,000 23.11 Pakistan N/A - - - - -
K-Agricole Limited * 5,000 20.00 Pakistan N/A - - - - -
New Pak Limited* 200,000 20.00 Pakistan N/A - - - - -
Pakistan Mercantile Exchange Limited 10,653,860 33.98 Pakistan June 30, 2023 4,769,315 4,463,439 676,898 199,485 199,485
Prudential Fund Management Limited* 150,000 20.00 Pakistan N/A - - - - -
*Nil figure represent shares which have been acquired under different arrangements without any cost
10.2.3 Joint Venture
United National Bank Limited 20,250,000 45.00 United December 219,715,668 199,381,061 6,133,623 1,148,072 (1,110,841)
Kingdom 31, 2022
10.2.4 Subsidiaries
NATIONAL BANK
Cast-N-Link Products Limited 1,245,000 76.51 Pakistan N/A - - - - -
N/A: Not available

PAKISTAN
2023 2022
------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------
10.3 Provision for diminution in value of investments
Opening balance 18,613,073 13,386,051
Charge / (reversals)
Charge for the year 3,136,270 5,226,348
Reversals for the year (1,319,964) (670,409)
Reversal on disposals (379,005) (179,661)
1,437,301 4,376,278
Transfers - net - 850,744
Closing Balance 20,050,374 18,613,073
10.3.1 Particulars of provision against debt securities 2023 2022

Category of classification NPI Provision NPI Provision
Domestic
Loss 6,262,151 6,262,151 6,525,731 6,394,746

Total 6,262,151 6,262,151 6,525,731 6,394,746
10.4 Movement Schedule for Associates and Joint Venture
2023
Share of Surplus / Surplus / Share of

Exchange
Opening Dividend profit / (loss) (deficit) on (deficit) on other Closing
Addition Disposal transalation
balance paid for the year - revaluation revaluation comprehensive balance
reserve
net of tax properties securities income
--------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------------------
Joint Venture
United National Bank Limited 7,441,308 - - - 1,226,065 2,365,301 47,791 1,179,076 - 12,259,541
7,441,308 - - - 1,226,065 2,365,301 47,791 1,179,076 - 12,259,541
Associates
Unlisted
Pakistan Emerging Venture Limited 50,565 - - - - - - - - 50,565
National Fructose Company Limited 6,500 - - - - - - - - 6,500
Dadabhoy Energy Supply Company Limited 32,105 - - - - - - - - 32,105
Pakistan Mercantile Exchange Limited 106,539 - - - - - - - - 106,539
Listed
First Credit and Investment Bank Limited 210,771 - - - 6,895 - - (8,749) - 208,917
Land Mark Spining Mills Limited 39,710 - - - - - - - - 39,710
SG Allied Business Limited 218,534 - - - - - - - - 218,534
Nina Industries Limited 49,060 - - - - - - - - 49,060
Agritech Limited - - - - - - - - - -
NBP Stock Fund 413,825 - - - 238,307 - - - - 652,132
1,127,609 - - - 245,202 - - (8,749) - 1,364,062

2022
Share of Surplus / Surplus / Share of

Exchange
Opening Dividend profit / (loss) (deficit) on (deficit) on other Closing
Addition Disposal transalation
balance paid for the year - revaluation revaluation comprehensive balance
reserve
net of tax properties securities income
-----------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------------
Joint Venture
United National Bank Limited 7,140,903 - - (114,405) 545,161 999,833 8,444 (1,153,514) 14,886 7,441,308
7,140,903 - - (114,405) 545,161 999,833 8,444 (1,153,514) 14,886 7,441,308

Associates
Unlisted
Pakistan Emerging Venture Limited 50,565 - - - - - - - - 50,565
National Fructose Company Limited 6,500 - - - - - - - - 6,500
National Assets Insurance Company Limited 44,815 - (44,815) - - - - - - -
Dadabhoy Energy Supply Company Limited 32,105 - - - - - - - - 32,105
Pakistan Mercantile Exchange Limited 106,539 - - - - - - - - 106,539
Listed
First Credit and Investment Bank Limited 211,537 - - - 3,492 - - (4,258) - 210,771
Land Mark Spining Mills Limited 39,710 - - - - - - - - 39,710
SG Allied Business Limited 218,534 - - - - - - - - 218,534
Nina Industries Limited 49,060 - - - - - - - - 49,060
Agritech Limited - - - - - - - - - -
NBP Stock Fund 512,401 - - - (98,576) - - - - 413,825
1,271,766 - (44,815) - (95,084) - - (4,258) - 1,127,609

2023 2022
------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------
10.5 Quality of available for sale securities
Details regarding quality of available for sale securities are as follows:
Federal government securities - government guaranteed

Ijarah Sukuks 30,424,484 20,518,238
Cost 3,952,327,526 2,854,798,086
Shares
Listed companies sector-wise
Automobile Assembler 2,442,432 1,775,528

Automobile Parts and Accessories 1,067,760 1,115,685
Cable and Electrical Goods 418,994 384,069
Cement 3,672,159 4,249,593
Chemical 711,682 627,704
Commercial Banks 9,982,145 6,575,004
Engineering 2,149,015 1,422,047
Fertilizer 3,518,165 2,985,056
Food and Personal Care 1,606,665 1,208,649
Insurance 1,642,671 1,642,671
Investment Banks / Investment companies / Securities companies 513,566 513,566
Leasing Companies 12,594 12,594
Leather and Tanneries 45,731 214,868
Oil and Gas Exploration Companies 2,952,721 2,686,730
Oil and Gas Marketing Companies 5,707,820 5,719,991
Paper and Board 670,751 718,972
Pharmaceuticals 2,708,507 1,000,104
Power Generation and Distribution 2,893,502 3,046,397
Real Estate Investment Trust 304,025 305,972
Refinery 756,817 756,715
Sugar and Allied Industries 259,483 259,483
Synthetic and Rayon 15,499 15,499
Technology and Communication 2,408,109 1,040,079
Textile Composite 2,736,219 1,918,908
Textile Spinning 655,195 655,195
Transport 245,937 236,225
Tobacco 695,241 -
Miscellaneous 838,715 454,606
Cost 51,696,434 41,606,225

2023 2022
Unlisted companies entity - wise Cost Breakup value Cost Breakup value
------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------
Digri Sugar Mills Limited 4,063 135,585 4,063 135,585

Gelcaps Pakistan Limited 4,665 2,961 4,665 2,961
Pakistan Agriculture Storage Service Corporation 5,500 3,551,928 5,500 3,551,928
Al Ameen Textile 327 N/A 327 N/A
Professional Management Modaraba (Formerly Al
Zamin Modarba Management (Private) Limited 1,000 2,134 1,000 2,134
AMZ Venture Limited Class A 121 N/A 121 N/A
Arabian Sea Country Club 6,500 (7,664) 6,500 (7,664)
Atlas Power Limited 375,000 1,286,500 375,000 1,282,850
Attock Textile Mills Limited 200 N/A 200 N/A
Pakistan Mortgage Refinance Company Limited 600,000 2,156,685 600,000 1,510,050
F.T.C. Management Company Private Limited 250 43,779 250 42,759
Fauji Akbar Portia Marines Terminal Limited 321,076 609,635 321,076 593,184
Fauji Oil Terminals and Distribution Limited 10,886 183,168 10,886 130,687
First Women Bank Limited 21,100 46,319 21,100 79,733
Fortune Securities Limited 5,000 6,702 5,000 8,804
Frontier Textile Mills Limited 500 272 500 272
Gulistan Power Generation Limited 2,200 8,096 2,200 8,096
Hazara Woolen Mills Limited 200 N/A 200 N/A
Industrial Development Bank of Pakistan 107 N/A 107 N/A
Inter Asia Leasing Company Limited 500 N/A 500 N/A
ISE Towers REIT Management Company Limited 30,346 62,264 30,346 52,988
Junaid Cotton Mills Limited 327 N/A 327 N/A
Kaisar Arts and Krafts Limited 8,395 N/A 8,395 N/A
Kaytex Mills Limited 3,778 N/A 3,778 N/A
Khushhali Microfinance Bank Limited 225,265 178,700 - -
Mian Mohammad Sugar Mills Limited 15 N/A 15 N/A
Muslim Ghee Mills Limited 1,810 N/A 1,810 N/A
Myfip Video Industries Limited 5,373 N/A 5,373 N/A
Mutual Fund Association of Pakistan - N/A 265 N/A
National Asset Leasing Corporation Limited 14 N/A 14 N/A
National Construction Limited 250 597 250 597
National Institution of Facilitation Technology (Private) Limited 1,526 55,574 1,526 64,687
National Investment Trust Limited 100 700,276 100 910,231
National Woolen Mills Limited 183 N/A 183 N/A
Natover Lease and Refinance 2,602 N/A 2,602 N/A
Nowshehra Engineering Works Limited 41 N/A 41 N/A
Pakistan Export Finance Guarantee Agency Limited 11,529 1,152 11,529 1,152
Pakistan Paper Corporation Limited 373 N/A 373 N/A
Pakistan Telephone Cables 143 N/A 143 N/A
Pakistan Textile City 100,000 12,410 100,000 12,410
Pakistan Tourism Development Corporation 100 138 100 138
People Steel Mills Limited 3,276 N/A 3,276 N/A
Qadri Textile Mills Limited 500 N/A 500 N/A
Rehman Cotton Mills Limited 16,958 107,895 16,958 107,895
Refrigerator Manufacturing Company Limited 4,589 N/A 4,589 N/A
Rousch Power Pakistan Limited 132,888 1,430,921 132,888 1,089,730
Ruby Rice and General Mills Limited 750 N/A 750 N/A
Sahrish Textile Mills 21 N/A 21 N/A
N/A: Not available

2023 2022
Unlisted companies entity - wise Cost Breakup value Cost Breakup value
---------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------------------------
Shoaib Capital 272 544 272 544

SME Bank Limited 26,950 (139,326) 26,950 (318)
South Asia Regional Fund 287 N/A 287 N/A
Star Salica Industries Limited 267 N/A 267 N/A
Syed Match Industries 2 N/A 2 N/A
Union Insurance Company of Pakistan 4 N/A 4 N/A
Unity Modaraba 28 N/A 28 N/A
Zafar Textiles Mills Limited 257 N/A 257 N/A
Zulsham Engineering Works Limited 330 N/A 330 N/A
Information System Associates Limited 1,719 N/A 1,719 N/A
1 Link (Pvt) Limited 50,000 428,290 50,000 428,290
Pakistan Corporate Restructuring Company Limited 96,000 N/A 96,000 N/A
Pakvitae (Private) Limited 21,000 - 21,000 N/A
2,109,486 1,884,485
N/A: Not available
2023 2022
--------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------
Listed
- AAA 14,861 21,818
- AA+, AA, AA- 7,510,782 8,010,870
- A+, A, A- 625,000 800,000
- Unrated 6,127,303 6,130,027
Cost 14,277,946 14,962,715
Unlisted
- AAA 18,395,305 18,927,154
- AA+, AA, AA- 4,693,580 5,151,626
- A+, A, A- 1,838,372 2,147,091
- BBB+, BBB, BBB- 299,760 299,760
- Unrated 13,647,354 10,658,643
Cost 38,874,371 37,184,274
Foreign Securities
2023 2022
Government Securities Cost Rating Cost Rating
USA 3,385,022 AA+ 1,914,312 AA+

2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
10.6 Particulars relating to Held to Maturity securities are as follows:
Federal Government Securities - Government guaranteed
Market Treasury Bills 161,108 29,519,190

Pakistan Investment Bonds 213,116,482 375,285,244
Ijarah Sukuks 14,087,500 13,130,709
Cost 231,654,078 420,927,551
Non Government Debt securities
Unlisted
- Unrated 404,585 404,585
Cost 404,585 404,585
Foreign Securities
2023 2022
Cost Rating Cost Rating
Government Securities
Azerbaijan 1,028,843 BB+ 826,514 BB+

Bangladesh 35,789,601 BB- 31,087,653 BB-
Kyrgyzstan 274,586 B3 814,349 B3
Kingdom of Saudi Arabia 4,202,951 A+ 3,367,991 A+
41,295,981 36,096,507
Non Government Debt Securities 2023 2022

Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
Listed
- Unrated - Cost 1,083 871
10.6.1 The market value of securities classified as held-to-maturity as at December 31, 2023 amounted to Rs. 252,003
million (2022: Rs. 435,936 million)
10.7 Investment in shares of a bank incorporated outside Pakistan - Bank Al-Jazira
The Bank holds 30,333,333 (2022: 30,333,333) shares in Bank Al-Jazira (BAJ) incorporated in the Kingdom of
Saudi Arabia, representing 3.7% (2022: 3.7%) holding in total equity of BAJ. The investment has been marked
to market using closing price as quoted on the Saudi Stock Exchange in accordance with SBP concurrence vide
letter No. BSD/SU-13/331/685/2006 dated February 17, 2006. BAJ’s Viability Rating is bb+ with short term and
long term Issuer Default Rating (IDR) at F2 and A- respectively by Fitch Rating Agency.
10.8 Out of 106,014,565 shares, 94,273,510 shares of Agritech Limited were acquired from Azgard Nine Limited as
part of multiple agreements including the Master Restructuring Agreement (MRA). These shares were acquired
at an agreed price of Rs. 35 per share.

10.9 Aggregate market value of investment in associates (quoted) on the basis of quoted prices amounts to Rs.
2,979 million (2022: Rs. 1,742 million).
10.10 Associates with zero carrying amount, represent the investments acquired from former National Development
Finance Corporation (NDFC) which have negative equity or whose operations were closed at the time of
amalgamation.
10.11 The details of break-up value based on latest available financial statements of unlisted investments in
associates are as follows:
Year / Period ended Break-up

value
Rupees in '000
Pakistan Emerging Venture Limited June 30, 2022 25

Mehran Industries Limited June 30, 2001 5,681
Tharparkar Sugar Mills Limited September 30, 2001 (83,140)
Prudential Fund Management June 30, 2007 (2,482)
Dadabhoy Energy Supply Company Limited June 30, 2007 103,952
Pakistan Mercantile Exchange Limited June 30, 2023 103,931
2023 2022
10.12 Investment in joint venture Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
United National Bank Limited (UNBL)
(Incorporated in United Kingdom) 10.12.1 12,259,541 7,441,308
10.12.1 Under a joint venture agreement, the Bank holds 20.25 million ordinary shares (45%) and United Bank Limited
(UBL) holds 23.25 million ordinary shares (55%) in UNBL. In addition to ordinary shares, four preference shares
categories as "A", "B", "C" and "D" have been issued and allotted. The "B" and "D" category shares are held by
the Bank and category "A" and "C" are held by UBL. Dividends payable on "A" and "B" shares are related to the
ability of the venture to utilize tax losses that have been surrendered to it on transfer of business from the Bank
or UBL as appropriate. Dividends payable on "C" and "D" shares are related to loans transferred to the venture
by the Bank or UBL that have been written-off or provided for at the point of transfer and the ability of the
venture to realize in excess of such loan value.
10.13 The investments also include shares acquired under tri-partite consent agreement dated June 29, 2011. These
strategic investments comprise of the shares of Pakistan State Oil (38,055,247 shares), shares of Sui Northern
Gas Pipeline Limited (18,805,318 shares) and shares of Pakistan Engineering Company (135,242 shares). The
cost of these shares amounts to Rs. 4,603 million and market value as at December 31, 2023 amounts to Rs.
8,186 million. These shares have been frozen by the Government of Pakistan for sale in the equity market due
to their proposed privatization and can not be sold without concurrence of privatization commission.
10.14 The investments also include 31,665,000 shares of Pakistan Reinsurance. The cost of these shares amounts to
Rs. 220 million and market value as at December 31, 2023 amounts to Rs. 244 million. These shares can not
be sold without concurrence of privatization commission.
10.15 The investment also include 20,000,000 shares of First Credit and Investment Bank. The cost of these shares
amounts to Rs. 157 million and market value as at December 31, 2023 amounts to Rs. 127 million. These
shares can not be disinvested without prior consultation with Ministry of Finance.

2023 2022
10.16 Investments in subsidiaries
------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------
Cast-N-Link Products Limited 1,245 1,245

Less: provision for diminution in value of investments (1,245) (1,245)
- -
10.16.1 The financial statements of Cast-N-Link Products Limited (CNL) are not available since the year 1997.
Accordingly, the management of the Group had applied to the Securities and Exchange Commission of Pakistan
(SECP) for the exemption from the requirements of section 228 of the Companies Act, 2017 (the Act) in respect
of consolidating its subsidiary CNL. The SECP, vide its letter EMD/233/627/2002-103 dated November 18,
2019, has not acceded the Bank's request from the exemption from consolidation of CNL in its consolidated
financial statements for the year ended December 31, 2019 and further directed to comply with the requirement
of section 228 of the Act. However the Bank, based on the fact that investment of the Group in CNL is not
material and comprise of 0.000024% of the total assets of the Bank and the investment have been fully
provided for, has not consolidated the financial statements of CNL.
11. ADVANCES
Performing Non Performing Total
2023 2022 2023 2022 2023 2022
Note
------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------
Loans, cash credits, running finances, etc. 1,325,108,441 1,168,292,452 205,901,344 190,934,209 1,531,009,785 1,359,226,661
Islamic financing and related assets 73,125,444 46,381,315 1,550,351 654,980 74,675,795 47,036,295
Net Investment in finance lease 11.1 16,207 35,384 24,096 28,944 40,303 64,328
Bills discounted and purchased 12,534,791 18,598,616 13,644,646 14,106,504 26,179,437 32,705,120
Advances - gross 11.2 1,410,784,883 1,233,307,767 221,120,437 205,724,637 1,631,905,320 1,439,032,404
Provision against advances

- Specific - - 203,794,530 191,014,747 203,794,530 191,014,747
- General 30,038,121 17,348,539 - - 30,038,121 17,348,539
11.4 30,038,121 17,348,539 203,794,530 191,014,747 233,832,651 208,363,286
Advances - net of provision 1,380,746,762 1,215,959,228 17,325,907 14,709,890 1,398,072,669 1,230,669,118
11.1 Net Investment in Finance Lease

2023 2022
Later than Later than
Not Not
one and Over five one and Over five
later than Total later than Total
upto five years upto five years
one year one year
years years
------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------
Lease rentals receivable 48,296 - - 48,296 52,152 - - 52,152

Residual value 16,332 - - 16,332 36,505 - - 36,505
Minimum lease payments 64,628 - - 64,628 88,657 - - 88,657
Less: Financial charges
for future periods 24,325 - - 24,325 24,329 - - 24,329
Present value of minimum
lease payments 40,303 - - 40,303 64,328 - - 64,328
The leases executed are for a term of 1 to 5 years. Security deposit is generally obtained upto 10% of the cost
of leased assets at the time of disbursement. The Bank requires the lessee to insure the leased assets in favor
of the Group. Additional surcharge is charged on delayed rentals. The average return implicit ranges from
10.19% to 14.85% (2022: 10.19% to 14.85%) per annum.

2023 2022
------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------
11.2 Particulars of advances (Gross)

1,631,905,320 1,439,032,404
11.3 Advances include Rs. 221,120 million (2022: 205,725 million) which have been placed under non-performing
status as detailed below.
2023 2022
Category of Classification
Non Non
Performing Provision Performing Provision
Loans Loans
------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------
Domestic
Other Assets Especially Mentioned 2,156,275 60,035 1,789,957 73,114
Substandard 6,421,005 1,560,252 5,888,114 1,439,917
Doubtful 11,443,314 5,980,028 8,883,354 4,648,305
Loss 136,054,217 133,629,152 135,113,451 132,837,538
156,074,811 141,229,467 151,674,876 138,998,874
Overseas
Not past due but impaired - - - -
Overdue by:
Upto 90 days - - - -
91 to 180 days - - - -
181 to 365 days 400,925 200,463 331,133 165,567
365 days 64,644,701 62,364,600 53,718,628 51,850,306
65,045,626 62,565,063 54,049,761 52,015,873
Total 221,120,437 203,794,530 205,724,637 191,014,747
11.4 Particulars of provision against advances
2023 2022
Specific General Total Specific General Total
Note
---------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------------------------------------
Opening balance 191,014,747 17,348,539 208,363,286 179,654,610 12,472,591 192,127,201

Exchange adjustments 12,178,389 153,606 12,331,995 8,349,754 107,952 8,457,706
Charge for the year 8,127,428 14,854,298 22,981,726 5,227,345 9,553,101 14,780,446
Reversals (8,129,837) (1,530,934) (9,660,771) (5,011,542) (1,757,105) (6,768,647)
(2,409) 13,323,364 13,320,955 215,803 7,795,996 8,011,799
Other movement 16,894 - 16,894 - - -
Amounts written off 11.5.2 (155,872) - (155,872) (177,162) - (177,162)
Amounts charged off-agriculture
financing 11.4.1.3 (44,607) - (44,607) (56,258) - (56,258)
Transfer from general to specific
provision 787,388 (787,388) - 3,028,000 (3,028,000) -
Closing balance 203,794,530 30,038,121 233,832,651 191,014,747 17,348,539 208,363,286
305
11.4.1 Particulars of provision against advances
2023 2022
---------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------------------------------------------
In local currency 141,229,466 29,767,923 170,997,389 138,998,874 16,741,242 155,740,116

In foreign currencies 62,565,064 270,198 62,835,262 52,015,873 607,297 52,623,170
203,794,530 30,038,121 233,832,651 191,014,747 17,348,539 208,363,286
11.4.1.1 General provision includes provision amounting to Rs. 4,987 million (2022: Rs. 5,211) against consumer & SME
finance portfolio as required by the Prudential Regulations issued by the SBP. General provision also includes
Rs. 270 million (2022: Rs. 607 million) pertaining to overseas advances to meet the requirements of regulatory
authorities of the respective countries in which the Group operates.
Keeping in view the portfolio assessment and the estimated impact of adoption of IFRS 9, the Bank has also
maintained a general provision of Rs. 24,781 million (2022: Rs. 11,530 million) against underperforming portfolio
on prudent basis, in view of prevailing economic conditions. This general provision is in addition to the
requirements of Prudential Regulations.
11.4.1.2 The SBP has allowed specific relaxation to the Bank for non-classification of overdue loans of certain Public
Sector Entities (PSEs) which are guaranteed by Government of Pakistan as non-performing loans up till
December 31, 2023. No provision is required against these loans; however, mark-up is being suspended as
required by the Prudential Regulations.
11.4.1.3 These represent non-performing advances for agriculture finance which have been classified as loss and fully
provided for more than 3 years. These non-performing advances have been charged off by extinguishing them
against the provision held in accordance with Prudential Regulations for Agriculture Financing issued by the
SBP. This charge off does not, in any way, prejudice the Group's right of recovery from these customers.
2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
11.5 Particulars of write-offs
11.5.1 Against provisions 11.5.2 155,872 170,824
11.5.2 Write-offs of Rs. 500,000 and above
- Domestic 41,087 128,797

- Overseas 61,582 1,649
11.6 102,669 130,446
Write-offs of below Rs. 500,000 53,203 40,378
Total Write offs 155,872 170,824
Total Reversals - 6,338
11.6 Details of loan write-off of Rs. 500,000/- and above
In terms of sub-section (3) of Section 33A of the Banking Companies Ordinance,1962, the statement in respect
of written-off loans or any other financial relief of rupees five hundred thousand or above allowed to a person(s)
during the year ended December 31, 2023 is given in Annexure-I to the consolidated financial statements
(except where such disclosure is restricted by overseas regulatory authorities).
11.7 Information related to islamic financing and related assets is given in note 2 of Annexure II and is an integral
part of these consolidated financial statements.

2023 2022
12. FIXED ASSETS Note
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------
Capital work-in-progress 12.1 1,639,234 1,086,001
Property and equipment 12.2 55,837,833 56,518,342
57,477,067 57,604,343
12.1 Capital work-in-progress
Civil works 1,569,774 1,010,529
Equipment 10,727 10,825
Advances to suppliers and contractors 58,733 64,647
1,639,234 1,086,001
12.2 Property and equipment
2023
Assets Assets
Assets Assets
Building Building Computer held held
ANNUAL REPORT 2023

Electrical, held held
Freehold Leasehold on on Furniture and under under
office Vehicles under under Total
land land Freehold Leasehold and fixture peripheral finance finance
equipment Ijarah - Ijarah -
land land equipment lease - lease -
Machinery
Vehicle
Vehicles Office
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------------------------------------------------
At January 1, 2023
Cost / revalued amount 21,472,757 21,087,923 7,467,088 5,618,029 7,754,929 5,465,672 8,060,552 2,064,610 467,099 9,627 273,248 14,367 79,755,901
Accumulated depreciation - - (1,786,019) (1,434,403) (6,030,316) (5,066,624) (7,061,438) (1,304,951) (294,782) (4,339) (253,524) (1,163) (23,237,559)
Net book value 21,472,757 21,087,923 5,681,069 4,183,626 1,724,613 399,048 999,114 759,659 172,317 5,288 19,724 13,204 56,518,342

Opening net book value 21,472,757 21,087,923 5,681,069 4,183,626 1,724,613 399,048 999,114 759,659 172,317 5,288 19,724 13,204 56,518,342
Additions - - 65,247 101,275 730,955 484,586 507,162 287,412 158,766 - - - 2,335,404
Movement in surplus on assets revalued - - - 17,842 - - 202 77 - - - - 18,121
Disposals - - - (178,130) (30,190) (9,101) (10,737) (55,180) (116,375) - - - (399,713)
Depreciation charge - - (294,946) (202,648) (539,884) (611,348) (553,356) (325,670) (65,670) (961) - - (2,594,483)
Depreciation adjustment - disposal - - - 3,750 18,347 8,849 9,185 33,015 92,004 - - - 165,150
Exchange rate adjustments - - - 54,303 13,383 32,783 9,683 1,670 - - - - 111,822
Other adjustments / transfers - cost - - - - (293,665) - - - (29,290) - - - (322,955)
Other adjustments / transfers - depreciation - - 1 - (115) (489) (682) - 7,430 - - - 6,145
Closing net book value 21,472,757 21,087,923 5,451,371 3,980,018 1,623,444 304,328 960,571 700,983 219,182 4,327 19,724 13,204 55,837,833

Net book value 21,472,757 21,087,923 5,451,371 3,980,018 1,623,444 304,328 960,571 700,983 219,182 4,327 19,724 13,204 55,837,833
25% to
5% on 5% on 20% on 33.33% 20%-50% 20% on 20% on 10% on 33% on 20% on

Rate of depreciation (percentage) Nil Nil book value book value cost on cost on cost cost cost cost cost book value
307
2022
Assets Assets Assets Assets
308
Computer held held
Building on Building on Electrical, held held
Free hold Lease hold Furniture and under under
Free hold Lease hold office Vehicles under under Total
land land and fixture peripheral finance finance
land land equipment lease - lease - Ijarah - Ijarah -
equipment
Vehicles Office Machinery Vehicle
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------------------------------------------------------------
At January 1, 2022
Net book value 20,370,446 19,465,743 5,002,880 3,906,767 1,731,022 494,006 1,136,939 887,769 170,209 6,250 19,752 13,208 53,204,991

Opening net book value 20,370,446 19,465,743 5,002,880 3,906,767 1,731,022 494,006 1,136,939 887,769 170,209 6,250 19,752 13,208 53,204,991
Additions - - 192,827 337,325 648,311 299,428 325,542 235,871 93,001 - - - 2,132,305
Movement in surplus on assets revalued 1,110,306 1,622,180 791,946 167,353 - - - - - - - - 3,691,785
Disposals - - - (61) (19,998) (16,493) (11,336) (186,098) (80,855) - - - (314,841)
Depreciation charge - - (262,362) (195,858) (654,965) (393,592) (525,724) (315,499) (64,057) (962) (28) (4) (2,413,051)
Depreciation adjustment - disposal - - - 61 16,566 16,021 11,063 135,560 54,019 - - - 233,290
Exchange rate adjustments - - - (11,024) 3,652 - 3,611 2,644 - - - - (1,117)

Other adjustments / transfers - cost (7,995) - (44,223) (21,787) (263) (1,538) 55,230 (3,138) - - 81,154 - 57,440
Other adjustments / transfers - depreciation - - 1 850 288 1,216 3,789 2,550 - - (81,154) - (72,460)
Closing net book value 21,472,757 21,087,923 5,681,069 4,183,626 1,724,613 399,048 999,114 759,659 172,317 5,288 19,724 13,204 56,518,342

Net book value 21,472,757 21,087,923 5,681,069 4,183,626 1,724,613 399,048 999,114 759,659 172,317 5,288 19,724 13,204 56,518,342
25% to 20% on
5% on 5% on 20% on 33.33% on 20%-50% 20% on 20% on 10% on 33% on book
Rate of depreciation (percentage) Nil Nil book value book value cost cost on cost cost cost cost cost value
12.2.1 Revaluation of Properties
The properties of the Bank have been revalued by the independent professional valuer as at December 31, 2022. The revaluation was carried out by an
independent professional valuer, RBS Associates (Private) Limited (PBA registered valuer) on the basis of professional assessment of present market values.
The total surplus against revaluation of fixed assets as at December 31, 2023, amounts to Rs. 47,396 million. Had there been no revaluation, the carrying amount
of the revalued assets at December 31, 2023, would have been as follows:
2023 2022
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------------------
Freehold land 1,132,637 1,132,637
Leasehold land 890,025 890,025
Building on freehold land 1,076,598 1,013,440
Building on leasehold land 2,006,052 1,909,929
5,105,312 4,946,031
NATIONAL BANK
12.2.2 Carrying amount of temporarily idle property of the Bank 5,583,785 5,319,961
12.2.3 The cost of fully depreciated assets still in use
Furniture and fixtures 2,261,860 2,152,106
Electrical and office equipment 3,658,267 3,278,441
Computer and peripheral equipment 3,282,996
3,515,860
Vehicles 1,435,407 1,333,988
10,871,394 10,047,531
PAKISTAN
12.3 Details of disposals of fixed assets to related parties
The particulars of disposal of fixed assets to related parties (Employees / Ex-Employees) are given below:
Gain /
disposal
-----------------------(Rupees in '000)---------------------
Vehicles 1,824 152 365 213 As per Entitlement Employee Mr.Riaz Mahmood
Vehicles 1,824 334 365 31 As per Entitlement Employee Mr.Mobashir Nabi
Vehicles 1,824 152 365 213 As per Entitlement Employee Ms.Nadia Ahmer
Vehicles 2,029 203 203 - As per Entitlement Employee Mr.Jalil Ahmed Tariq
Vehicles 2,229 706 706 - As per Entitlement Ex-Employee Mr.Javed Haider
Vehicles 2,695 1,752 1,752 - As per Entitlement Ex-Employee Mr.Sohail Akhtar Arbab
Vehicles 2,623 1,792 1,792 - As per Entitlement Employee Mr.Saeed Ahmed Shah
Vehicles 8,908 5,048 5,048 - As per Entitlement Employee Mr.Rehmat Ali Hasnie
Vehicles 1,824 30 182 152 As per Entitlement Ex-Employee Mr.Naveed Sultan
Vehicles 2,623 1,749 1,749 - As per Entitlement Employee Mr. Manzoor Ahmed
Vehicles 2,675 1,516 1,516 - As per Entitlement Employee Mr.Muhammad Zaman Khan
Vehicles 2,380 793 793 - As per Entitlement Employee Mr.Abdul Majid Sheikh
Vehicles 2,723 1,452 1,452 - As per Entitlement Employee Mr.Noor Ul Islam
Vehicles 2,525 800 800 - As per Entitlement Employee Mr.Abdul Jamal Tariq
Vehicles 2,723 1,498 1,498 - As per Entitlement Employee Mr.Mumtaz Ahmed Farooq
Vehicles 2,723 1,271 1,271 - As per Entitlement Employee Mr.Nasir Khan
Vehicles 2,525 842 842 - As per Entitlement Employee Mr.Mubashir Ahmed
Vehicles 2,775 1,711 1,711 - As per Entitlement Employee Mr.Moeen-Ud-Din
49,452 21,801 22,410 609
Computer and peripheral equipment 101 - 10 10 As per Entitlement Employee Mr.Javed Ashraf
Computer and peripheral equipment 100 - 10 10 As per Entitlement Employee Mr.Agha Abdul Hakeem
Computer and peripheral equipment 115 - 12 12 As per Entitlement Employee Ms.Hina Saleem
Computer and peripheral equipment 111 - 11 11 As per Entitlement Employee Mr.Khalid Ahmed
Computer and peripheral equipment 122 - 12 12 As per Entitlement Employee Mr.Zeeshan Siddiqui
Computer and peripheral equipment 127 - 13 13 As per Entitlement Employee Mr.Azmat Zuberi
Computer and peripheral equipment 64 - 6 6 As per Entitlement Employee Mr.Muhammad Adeel Khan
Computer and peripheral equipment 112 - 11 11 As per Entitlement Employee Mr.Murshid Ali Khan
Computer and peripheral equipment 268 - 27 27 As per Entitlement Employee Mr.Amin Manji
Computer and peripheral equipment 121 - 12 12 As per Entitlement Employee Mr.Vinod Kumar
Computer and peripheral equipment 127 - 13 13 As per Entitlement Employee Mr.Maqsood Ahmed Siddiqui
Computer and peripheral equipment 126 - 13 13 As per Entitlement Employee Mr.Raheel Iqbal
Computer and peripheral equipment 109 - 11 11 As per Entitlement Employee Ms.Sana Aslam
Computer and peripheral equipment 99 - 10 10 As per Entitlement Employee Mr.Aijaz Hyder Shaikh
Computer and peripheral equipment 64 - 6 6 As per Entitlement Employee Mr.Sabghatullah Shaikh
Computer and peripheral equipment 224 - 22 22 As per Entitlement Employee Mr.Abdul Wahid Sethi
Computer and peripheral equipment 127 - 13 13 As per Entitlement Employee Mr.Amer Nasrullah
Computer and peripheral equipment 118 - 12 12 As per Entitlement Employee Mr.Hamid Hassan
Computer and peripheral equipment 118 - 12 12 As per Entitlement Employee Mr.Umair Asghar Khan
Computer and peripheral equipment 140 - 14 14 As per Entitlement Employee Mr.Asif Khan
Computer and peripheral equipment 124 - 12 12 As per Entitlement Employee Mr.Waqee Siddiqui
Computer and peripheral equipment 125 - 13 13 As per Entitlement Employee Mr.Wajahat Aziz Qureshi
Computer and peripheral equipment 122 - 12 12 As per Entitlement Employee Mr.Tahir Abbas
Computer and peripheral equipment 122 - 12 12 As per Entitlement Employee Mr.Ehtisham Rashid
Computer and peripheral equipment 128 - 13 13 As per Entitlement Employee Mr.Abdul Waheed Sabir
Computer and peripheral equipment 121 - 12 12 As per Entitlement Employee Ms.Sapna
Computer and peripheral equipment 120 - 12 12 As per Entitlement Employee Mr.Faisal Khan
Computer and peripheral equipment 112 - 11 11 As per Entitlement Employee Ms.Ramsha Areeb
Computer and peripheral equipment 118 - 12 12 As per Entitlement Employee Mr.Zubair Ahmed
Computer and peripheral equipment 128 - 13 13 As per Entitlement Employee Ms.Amber Salim
Computer and peripheral equipment 134 - 13 13 As per Entitlement Employee Mr.Shoaib Qaisarani
Computer and peripheral equipment 113 - 11 11 As per Entitlement Employee Ms.Fouzia Nawaz Baloch
Computer and peripheral equipment 120 - 12 12 As per Entitlement Employee Mr.Arif
Computer and peripheral equipment 115 - 11 11 As per Entitlement Employee Mr.Nauman Ahmed
Computer and peripheral equipment 118 - 12 12 As per Entitlement Employee Mr.Amir Khan
Computer and peripheral equipment 121 - 12 12 As per Entitlement Employee Mr.Khurram Jafri
Computer and peripheral equipment 159 - 16 16 As per Entitlement Employee Mr.Sufyan Islam
Computer and peripheral equipment 112 - 11 11 As per Entitlement Employee Mr.Muhammad Ahmer

Gain /
disposal
-----------------------(Rupees
- in '000)---------------------
Computer and peripheral equipment 227 - 23 23 As per Entitlement Ex-Employee Ms.Asma Shaikh
Computer and peripheral equipment 128 - 13 13 As per Entitlement Employee Mr.Syed Arshad Ali
Computer and peripheral equipment 96 - 10 10 As per Entitlement Ex-Employee Mr.Syed Jamal Baquar
Computer and peripheral equipment 102 - 10 10 As per Entitlement Ex-Employee Ms.Saima Abdul Rashid
Computer and peripheral equipment 64 - 6 6 As per Entitlement Ex-Employee Mr.S Shoaib Ur Rehman
Computer and peripheral equipment 99 - 10 10 As per Entitlement Ex-Employee Mr.Muhammad Mubashir Ahmed
Computer and peripheral equipment 96 - 10 10 As per Entitlement Ex-Employee Mr.Mumtaz A Farooq
Computer and peripheral equipment 100 - 10 10 As per Entitlement Ex-Employee Mr.Muhammad Farukh Ghauri
Computer and peripheral equipment 191 - - - As per Entitlement Ex-Employee Mr.Umair Wasti
Computer and peripheral equipment 131 - 13 13 As per Entitlement Ex-Employee Mr.Muhammad Fuad Mohsin
Computer and peripheral equipment 193 - - - As per Entitlement Ex-Employee Mr.Nauman Riaz
6,708 - 604 604
Electrical & Office equipments 331 - - - As per Entitlement Ex-Employee Ms.Asma Shaikh
Electrical & Office equipments 306 - - - As per Entitlement Ex-Employee Mr.Nauman Riaz
Electrical & Office equipments 50 - - - As per Entitlement Ex-Employee Ms.Saima Abdul Rashid
Electrical & Office equipments 70 - - - As per Entitlement Ex-Employee Mr.Ali Mansoor
Electrical & Office equipments 265 - - - As per Entitlement Ex-Employee Mr.Umair Wasti
Electrical & Office equipments 40 - - - As per Entitlement Ex-Employee Mr. Muhammad Fuad Mohsin
Electrical & Office equipments 42 - - - As per Entitlement Ex-Employee Mr.Muhammad Fuad Mohsin
Electrical & Office equipments 800 573 573 - As per Entitlement Ex-Employee Mr.Jamal Baqaur
Electrical & Office equipments 800 427 427 - As per Entitlement Ex-Employee Mr.Ali Mansoor
4,419 1,000 1,000 -
Furniture and fixture 225 37 37 - As per Entitlement Ex-Employee Mr.Naveed Sultan

Furniture and fixture 160 15 15 - As per Entitlement Ex-Employee Mr.Muhammad Yahya
Furniture and fixture 330 19 19 - As per Entitlement Ex-Employee Mr.Javed Haider
Furniture and fixture 160 18 18 - As per Entitlement Ex-Employee Mr.Manzoor Hussain Niza
Furniture and fixture 160 33 33 - As per Entitlement Ex-Employee Mr.Syed Amjad Hussain Bukhari
Furniture and fixture 160 45 45 - As per Entitlement Ex-Employee Ms.Sumbul Akhter
Furniture and fixture 160 51 51 - As per Entitlement Ex-Employee Ms.Samreen Zehra
Furniture and fixture 160 1 1 - As per Entitlement Ex-Employee Mr.Ahmed Kashif Khan
Furniture and fixture 160 53 53 - As per Entitlement Ex-Employee Mr.Muhammad Akbar
Furniture and fixture 160 16 16 - As per Entitlement Ex-Employee Mr.Rafiq Ahmed
Furniture and fixture 160 41 41 - As per Entitlement Ex-Employee Mr.Asghar Hameed
Furniture and fixture 160 60 60 - As per Entitlement Ex-Employee Mr.Muhammad Najeeb Hassan
Furniture and fixture 160 49 49 - As per Entitlement Ex-Employee Mr.Muhammad Akram Khan
Furniture and fixture 190 48 48 - As per Entitlement Ex-Employee Mr.Muhammad Yousuf Raza
Furniture and fixture 190 18 18 - As per Entitlement Ex-Employee Mr.Syed Taha Tanveer Ali
Furniture and fixture 160 63 63 - As per Entitlement Ex-Employee Mr.Late Amjad
Furniture and fixture 160 1 1 - As per Entitlement Ex-Employee Mr.Aftab Azeem
Furniture and fixture 225 62 62 - As per Entitlement Ex-Employee Mr.Saeed Ahmed Shah
Furniture and fixture 160 144 144 - As per Entitlement Ex-Employee Mr.Naeem Hassan
Furniture and fixture 200 127 127 - As per Entitlement Ex-Employee Mr.Syed Murtaza Shah
Furniture and fixture 200 107 107 - As per Entitlement Ex-Employee Mr.Imtiaz Ahmed Shaikh
Furniture and fixture 190 63 63 - As per Entitlement Ex-Employee Mr.Amanullah
Furniture and fixture 160 5 5 - As per Entitlement Ex-Employee Mr.Aamir Rizwan
Furniture and fixture 160 44 44 - As per Entitlement Ex-Employee Mr.Shahadat Hussain
Furniture and fixture 50 - - - As per Entitlement Ex-Employee Mr.Masihullah
Furniture and fixture 190 38 38 - As per Entitlement Ex-Employee Mr.Arshad Rizwan
Furniture and fixture 335 89 89 - As per Entitlement Ex-Employee Mr.Dr.Jalil Ahmad Tariq
Furniture and fixture 160 44 44 - As per Entitlement Ex-Employee Mr.Sakhi Jan Khattak
Furniture and fixture 190 22 22 - As per Entitlement Ex-Employee Mr.Mansoor Ahmad
Furniture and fixture 160 43 43 - As per Entitlement Ex-Employee Mr.Abdul Hafeez Sehto
Furniture and fixture 190 93 93 - As per Entitlement Ex-Employee Mr.Muhammad Ayub
Furniture and fixture 160 32 32 - As per Entitlement Ex-Employee Mr.Tariq Majeed Malkana
Furniture and fixture 160 27 27 - As per Entitlement Ex-Employee Mr.Muhammad Sharif
Furniture and fixture 160 51 51 - As per Entitlement Ex-Employee Mr.Mir Faiz Hussain Talpur
Furniture and fixture 160 29 29 - As per Entitlement Ex-Employee Mr.Sobho Zardari

Gain /
disposal
-----------------------(Rupees
- in '000)---------------------
-
Furniture and fixture 200 28 28 - As per Entitlement Ex-Employee Mr.Muhammad Farrukh Ghauri
Furniture and fixture 160 20 20 - As per Entitlement Ex-Employee Mr.Muhammad Shoaib
Furniture and fixture 160 52 52 - As per Entitlement Ex-Employee Mr.Saleh Muhammad Baloch
Furniture and fixture 160 52 52 - As per Entitlement Ex-Employee Mr.Syed Wajid Ali
Furniture and fixture 335 104 104 - As per Entitlement Ex-Employee Mr.Muhammad Zaman Khan
Furniture and fixture 160 47 47 - As per Entitlement Ex-Employee Mr.Amjad Masood
Furniture and fixture 200 58 58 - As per Entitlement Ex-Employee Mr.Abdul Majid Sheikh
Furniture and fixture 200 63 63 - As per Entitlement Ex-Employee Mr.Noor Ul Islam
Furniture and fixture 175 - - - As per Entitlement Ex-Employee Mr.Abdul Jamal Tariq Hassan
Furniture and fixture 200 53 53 - As per Entitlement Ex-Employee Mr.Muhammad Mumtaz Ahmed Farooq
Furniture and fixture 160 25 25 - As per Entitlement Ex-Employee Mr.Ishrat Bokhari
Furniture and fixture 160 39 39 - As per Entitlement Ex-Employee Mr.Mansoor Ahmed
Furniture and fixture 190 33 33 - As per Entitlement Ex-Employee Mr.Ashraf Ali Abbasi
Furniture and fixture 200 27 27 - As per Entitlement Ex-Employee Mr.Nasir Khan
Furniture and fixture 175 6 6 - As per Entitlement Ex-Employee Mr.Rao Naeem Ahmed
Furniture and fixture 160 11 11 - As per Entitlement Ex-Employee Mr.Gohar Abbas
Furniture and fixture 190 41 41 - As per Entitlement Ex-Employee Mr.Muhamamd Nabi
Furniture and fixture 160 45 45 - As per Entitlement Ex-Employee Mr.Zafar Irshad
Furniture and fixture 200 45 45 - As per Entitlement Ex-Employee Mr.Shamim Ul Hassan Waheed
Furniture and fixture 160 43 43 - As per Entitlement Ex-Employee Mr.Muhammad Yousaf
Furniture and fixture 200 55 55 - As per Entitlement Ex-Employee Mr.Manzoor Ahmad
Furniture and fixture 160 32 32 - As per Entitlement Ex-Employee Mr.Arshad Ali
10,290 2,467 2,467 -
- - - -
70,869 25,268 26,481 1,213
2023 2022
13. INTANGIBLE ASSETS Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
Capital work-in-progress 470,540 869,907

Intangible assets 13.1 1,715,754 1,231,415
2,186,294 2,101,322
2023
13.1 Intangible assets Goodwill on
Website NBP Fund Total
Application software
Acquisition
---------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------------------------------
At January 1, 2023
Cost 2,913,952 2,296,410 1,041 655,146 5,866,549
Accumulated amortisation and impairment (2,913,952) (1,627,548) (1,041) (92,593) (4,635,134)
Net book value - 668,862 - 562,553 1,231,415

Opening net book value - 668,862 - 562,553 1,231,415
Additions:
- developed internally - 30,000 - - 30,000
- through acquisitions / purchase - 690,490 - - 690,490
Adjustments - addition - (789) (789)
Amortisation charge - (324,753) - - (324,753)
Exchange rate adjustments - 88,778 - - 88,778
Other adjustments - amortisation - 613 - - 613
Closing net book value - 1,153,201 - 562,553 1,715,754

Cost 2,913,952 3,104,889 1,041 655,146 6,675,028
Net book value - 1,153,201 - 562,553 1,715,754
Rate of amortisation (percentage) 33.33 % on 33.33 % on 33.33 % on

Nil
cost cost cost
Useful life 3 years 3 years 3 years

2022
Goodwill on
Website NBP Fund Total
Application software
Acquisition
---------------------------------------------------------------------------------------------------------------------(Rupees
At January 1, 2022
in '000)--------------------------------------------------------
Cost 2,913,952 1,870,623 1,041 655,146 5,440,762
Net book value - 608,893 - 562,553 1,171,446

Opening net book value - 608,893 - 562,553 1,171,446
Additions:
- developed internally - 57,315 - - 57,315
- directly purchased - 296,952 - - 296,952
Adjustments - addition - 28,750 - - 28,750
Disposals - - - -
Amortisation charge - (365,818) - - (365,818)
Exchange rate adjustments - 42,770 - - 42,770
Other adjustments - cost - - -
Other adjustments - amortization - - -
Closing net book value - 668,862 - 562,553 1,231,415

Cost 2,913,952 2,296,410 1,041 655,146 5,866,549
Net book value - 668,862 - 562,553 1,231,415
Rate of amortisation (percentage) 33.33 % on 33.33 % on 33.33 % on Nil

Useful life cost cost cost
3 years 3 years 3 years
13.2 For the purpose of impairment testing of goodwill, management has considered discounted cash flow method
using cost of equity of 21% and terminal growth of 3.0% considering five years cash flows. Further, discount for
lack of marketability is also considered at the rate of 21%. Other key assumption used in the method are
management fees, growth rates on asset under management keeping in view of industry growth, expenses
based on the historic growth trends, short term investment with the assumption of reinvestment and discount
rate which is based on risk free rate, sector beta and market equity risk premium.
For the past 5 years, the company has provided sustainable profitability. As a result, the recoverable amount
exceeds the carrying value as at December 31, 2023, therefore, management did not identify any impairment.
2023 2022
13.3 The cost of fully amortised intangible assets that are still in use.
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
Core Banking Application 2,913,952 2,913,952

Computer software 927,410 873,310
Website 1,041 1,041
3,842,403 3,788,303
14. RIGHT OF USE ASSETS

Additions during the year 2,374,880 2,421,546
Derecognition during the year (59,820) (19,860)
Depreciation charged for the year (2,165,226) (2,306,599)

15. DEFERRED TAX ASSETS / (DEFERRED TAX LIABILITIES)
2023
Recgonised in
Recognised in
other At December 31,
At January 01, 2023 profit and loss
comprehensive 2023
account
income
---------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------------------------
Deductible temporary differences on
- Post retirement employee benefits 7,467,549 41,331 (506,410) 7,002,470
- Provision against loans and advances 12,925,197 (2,781,685) - 10,143,512
- Fixed assets 1,395,724 154,893 - 1,550,617
- Other provisions 107,841 (9,052) - 98,789
- Right of use assets 670,604 (18,752) - 651,852
22,929,593 (2,613,265) (506,410) 19,809,918
Taxable temporary differences on
- Excess of accounting book value of leased assets
over lease liabilities (7,890) 11,551 12,377 16,038
- Surplus on revaluation of investments 3,208,916 - (19,432,227) (16,223,311)
- Surplus on revaluation of non-banking assets (21,752) - (85,096) (106,848)
- Exchange translation reserve (734,250) - (382,586) (1,116,836)
(523,363) 192,015 (20,321,138) (20,652,486)
22,406,230 (2,421,250) (20,827,548) (842,568)
2022
Recgonised in other
Recognised in profit At December 31,
At January 01, 2022 comprehensive
and loss account 2023
income
---------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------------------------
Deductible temporary differences on
- Post retirement employee benefits 5,072,768 34,236 2,360,545 7,467,549
- Provision against loans and advances 10,457,938 2,467,259 - 12,925,197
- Fixed assets 1,079,805 315,919 - 1,395,724
- Other provision 107,841 - - 107,841
- Right of use assets 502,538 168,066 - 670,604
17,583,568 2,985,480 2,360,545 22,929,593
Taxable temporary differences on
- Excess of accounting book value of leased assets
over lease liabilities 796 (8,655) (31) (7,890)
- Surplus on revaluation of investments (12,715,501) 82 15,924,335 3,208,916
- Surplus on revaluation of non-banking assets (52,732) - 30,980 (21,752)
(15,680,757) 140,561 15,016,833 (523,363)
1,902,811 3,126,041 17,377,378 22,406,230

2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
16. OTHER ASSETS
Income / return / mark-up accrued in local currency - net of provision 185,624,656 99,446,324
Income / return / mark-up accrued in foreign currency - net of provision 4,531,523 4,012,820
Advances, deposits, advance rent and other prepayments 16.1 3,045,383 3,176,299
Advance taxation (payments less provisions) and Income tax refunds receivable 16.6 1,133,524 11,063,715
Compensation for delayed tax refunds 22,129,925 20,809,580
Non-banking assets acquired in satisfaction of claims 16.4 1,169,898 1,179,943
Assets acquired from Corporate and Industrial Restructuring Corporation (CIRC) 208,423 208,423
Acceptances 8,100,364 20,644,122
Commission receivable on Government treasury transactions 5,182,665 5,253,389
Receivable on account of Government transactions 16.2 323,172 323,172
Receivable from Government under VHS scheme 16.3 418,834 418,834
Receivable against sale / purchase of shares 234,079 823,140
Receivable from SBP 24,698,013 -
Receivable from Pakistan Stock Exchange 292,822 173,941
Receivable from mutual funds 1,238,517 985,894
Receivable from Customers 377,044 -
Others 9,052,672 8,312,213
268,429,488 177,465,108
Less: Provision held against other assets 16.5 12,495,413 12,244,043
Other assets (net of provision) 255,934,075 165,221,065

Surplus on revaluation of non-banking assets acquired in satisfaction of claims 2,803,228 2,520,000
Other assets - total 258,737,303 167,741,065
16.1 This includes Rs. 1,400 million (2022: Rs. 1,400 million) advance against Pre-IPO placement of Term Finance
Certificates and REIT Fund.
16.2 This represents amount receivable from GoP on account of encashment of various instruments handled by the
Group for GoP as an agent of the SBP. Due to uncertainty about its recoverability, full amount has been
provided for.
16.3 This represents payments made under the Voluntary Handshake Scheme (VHS), recoverable from GoP. Due to
uncertainty about its recoverability, full amount has been provided for.

2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
16.4 Market value of Non-banking assets acquired in satisfaction of claims 3,973,126 3,699,943
An independent valuation of the Bank’s non-banking assets was performed by an independent professional
valuer to determine the fair value of the assets as at December 31, 2023. The valuation was carried out by K.G.
Traders (Pvt) Limited (PBA registered valuer) on the basis of an assessment of present market values.
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
16.4.1 Non-banking assets acquired in satisfaction of claims

(Deficit) / surplus 283,228 (343,886)
Depreciation (10,045) (15,717)
16.5 Provision held against other assets
Income / mark-up accrued in local currency 152,607 152,607

Advances, deposits, advance rent and other prepayments 800,000 800,000
Receivable on account of Government transactions 323,172 323,172
Receivable from Government under VHS scheme 418,834 418,834
Protested bills 4,377,337 4,297,516
Ex-MBL / NDFC 760,941 760,875
Assets acquired from Corporate and Industrial Restructuring Corporation asset (CIRC) 208,423 208,423
Others 5,162,158 4,990,675
12,495,413 12,244,043
16.5.1 Movement in provision held against other assets
Opening balance 12,244,043 11,709,318

Charge for the year 239,045 562,955
Other movement 57,519 -
Adjustment against provision (45,194) (28,230)
Closing balance 12,495,413 12,244,043
16.6 During the year, the Bank has adjusted an amount of Rs. 9,099 million (2022: Rs. 7,475 million) against its
advance tax liability and demand of previous tax year against income tax refunds receivables. Further, refunds
amounting to Rs. 10,650 million (2022: 5,404 million) were also determined.
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
17. BILLS PAYABLE
In Pakistan 67,822,126 54,969,587

Outside Pakistan 178,322 298,432
68,000,448 55,268,019

2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
18. BORROWINGS
Secured
Borrowings from State Bank of Pakistan
Under Export Refinance Scheme 18.2 29,815,400 37,142,580
Financing Scheme for Renewable Energy 18.3 1,289,488 1,019,611
Refinance Facility for Modernization of SMEs 18.4 95,111 43,824
Financing Facility for storage of Agriculture Produce (FFSAP) 18.5 599,548 667,327
Under Long Term Financing Facility (LTFF) 18.6 17,197,820 20,254,808
Refinance Scheme for Payment of Wages and Salaries 18.7 - 35,950
Temporary Economic Refinance Facility 18.8 22,827,889 24,126,421
Refinance and Credit Guarantee Scheme for Women Entrepreneurs (RCWE) 18.9 29,220 -
Refinance Facility for Combating Covid-19 18.10 45,352 66,159
Export Refinance scheme for Bill Discounting 18.11 2,606,143 1,075,204
74,505,971 84,431,884
Repurchase agreement borrowings 18.12 2,064,472,106 1,826,206,763

Bai Muajjal 18.13 - 4,036,995
Total secured 2,138,978,077 1,914,675,642
Unsecured
Call borrowings 18.12 19,434,142 25,810,145
Overdrawn nostro accounts 19,330,975 -
Total unsecured 38,765,117 25,810,145
2,177,743,194 1,940,485,787
18.1 Particulars of borrowings with respect to currencies

2,177,743,194 1,940,485,787
18.2 The Bank has entered into an agreement with the SBP for extending export finance to customers. As per the
terms of the agreement, the Bank has granted the SBP the right to recover the outstanding amounts from the
Bank at the date of maturity of the finances by directly debiting the Bank's current account maintained with the
SBP. These borrowings are repayable within 180 days. These carry mark-up at rates ranging from 13.00% to
19.00% (2022: 3.00% to 13.00%) per annum.
18.3 These borrowings have been obtained from the SBP for providing financing facilities to address challenges of
energy shortage and climate change through promotion of renewable energy. These borrowings shall be
repayable for a maximum period of twelve (12) years. These carry mark-up at rates ranging from 2.00% to
3.00% (2022: 2.00% to 3.00%) per annum.
18.4 These borrowings have been obtained from the SBP under a scheme to finance modernization of Small and
Medium Enterprises by providing financing facilities for setting up of new units, purchase of new plant and
machinery for Balancing, Modernization and Replacement (BMR) of existing units and financing for import /
local purchase of new generators upto a maximum capacity of 500 KVA. These borrowings shall be repayable
for a maximum period of ten years and carry mark-up at rates upto 2.00% (2022: 2.00%) per annum.

18.5 These borrowings have been obtained from the SBP for providing financing facilities to develop the agricultural
produce marketing and enhance storage capacity, to encourage Private Sector to establish Silos, Warehouses
and Cold Storages. These borrowings shall be repayable for a maximum period of ten years. These carry mark-
up at rates ranging from 2.5% to 3.5% (2022: 2.5% to 3.5%) per annum.
18.6 These borrowings have been obtained from the SBP for providing financing facilities to exporters for adoption of
new technologies and modernization of their plant and machinery. These borrowings shall be repayable for a
maximum period of ten years. These carry mark-up at rates ranging from 4.0% to 19.0% (2022: 2.00% to
4.00%) per annum.
18.7 These borrowings have been obtained from the SBP with a view to support businesses to continue payment of
wages and salaries to their workers and employees in the aftermath of corona virus (COVID-19) outbreak.
These borrowings are repayable for a maximum period of 2.5 years. These carry mark-up at rates ranging from
Nil (2022: 1.00% to 2.00%) per annum.
18.8 These borrowings have been obtained from the SBP under a scheme to provide concessionary refinance for
setting up new industrial units in the backdrop of challenges faced by the industries during the pandemic. These
borrowings are repayable for a maximum period of 10 years. These carry mark-up at a rate of 1.0% (2022:
3.00%) per annum.
18.9 These borrowings have been obtained from the SBP for improving access to finance for the women
entrepreneurs, a refinance cum credit guarantee scheme is being launched for the women borrowers across the
country. Under the scheme, refinancing will be provided by State Bank of Pakistan at 0% to participating
financial institutions for onward lending to women entrepreneurs across the country at a mark-up rate of upto
5% per annum.
18.10 These borrowings have been obtained from the SBP with a view to provide long term local currency finance for
imported and locally manufactured medical equipment to be used for combating COVID – 19. The facility will be
available to all the Hospitals and Medical Centres duly registered with respective provincial / federal agencies /
commissions and engaged in controlling & eradication of COVID – 19. These borrowings are repayable for a
maximum period of 5 years. These carry mark-up at rates at 0.00% (2022: 0.00%) per annum.
18.11 These borrowings have been obtained from the SBP for providing export bill discounting facilities to customers.
These carry mark-up at rates ranging from 1.00% to 2.00% per annum (2022: 0.00% to 2.00% per annum) and
are due to mature latest by May 7, 2024.
18.12 Mark-up / interest rates and other terms are as follows:
- Repurchase agreement borrowings carry mark-up ranging from 21.75% to 23% per annum (2022: 15.2% to
17% per annum) having maturity on January 2, 2024 to January 19, 2024.
- Call borrowings carry interest ranging from 5.50% to 21.80% per annum (2022: 3% to 16.5% per annum).
18.13 Bai Muajjal borrowings carry mark-up rate of 0% per annum (2022: 16.42%).
18.14 Borrowings from the SBP under export oriented projects refinance schemes of the SBP are secured by the
Bank's cash and security balances held by the SBP.
18.15 Pakistan Investment Bonds and Market Treasury Bills having maturity of 2 - 10 Years and 3 - 12 Months
respectively, are pledged as security under borrowing having carrying amount of Rs. 2,064,472 million (2022:
Rs. 1,826,206 million).

19. DEPOSITS AND OTHER ACCOUNTS
2023 2022
Total Total
Currency Currencies Currency Currencies
Note
----------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------------------------------------
Customers
Current deposits - remunerative 692,443,686 - 692,443,686 733,037,562 - 733,037,562
Current deposits - non- remunerative 656,289,463 161,079,615 817,369,078 408,169,670 159,575,493 567,745,163
Term deposits 509,997,709 232,985,846 742,983,555 400,618,865 116,541,863 517,160,728
Others 13,082,003 7,182 13,089,185 9,563,715 7,855 9,571,570
2,638,113,908 528,467,474 3,166,581,382 2,232,677,355 384,155,062 2,616,832,417
Current deposits 458,765,517 1,400,531 460,166,048 5,795,356 3,492,893 9,288,249
Term deposits 12,824,721 3,636,495 16,461,216 9,716,964 6,442,283 16,159,247
Others 6,310,317 - 6,310,317 4,878,234 - 4,878,234
496,846,832 9,681,700 506,528,532 35,580,882 12,859,958 48,440,840
19.3 3,134,960,740 538,149,174 3,673,109,914 2,268,258,237 397,015,020 2,665,273,257
2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
Individuals 1,220,898,183 990,051,893
Government (Federal and Provincial) 1,255,786,576 1,101,408,344
Public Sector Entities 385,531,338 244,103,310
Banking Companies 472,952,639 20,352,975
Non-Banking Financial Institutions 33,575,893 28,087,865
Private Sector 304,365,285 281,268,870
3,673,109,914 2,665,273,257
19.2 Foreign currencies deposits includes deposit of foreign branches amounting to Rs. 99,316 million (2022: Rs.
75,917 million).
19.3 This includes deposits eligible to be covered under insurance arrangements amounting to Rs. 1,013,777 million
(2022: Rs. 870,538 million) including islamic branches.
20. LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE
2023 2022
Minimum Financial Principal Minimum Financial Principal
lease charges for outstanding lease charges for outstanding
payments future periods payments future periods
-----------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------
Not later than one year 92,543 28,302 64,241 55,683 10,935 44,748
Later than one year
and upto five years 168,280 24,253 144,027 85,093 8,388 76,705
Over five years - - - - - -
260,823 52,555 208,268 140,776 19,323 121,453

The Group has entered into lease agreements with various financial institutions for lease of vehicles. Lease
rentals are payable in monthly installments. Financial charges included in lease rentals are determined on the
basis of discount factors applied at the rate of 6M KIBOR + 1.5% per annum (2022: 6M KIBOR + 1.5% per
annum). At the end of lease term, the Group has option to acquire the assets, subject to adjustment of security
deposits.
2023 2022
Note
------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------
21. LEASE LIABILITIES AGAINST RIGHT OF USE ASSETS
Lease liabilities included in the statement of financial position

As at December 31 8,682,732 8,761,015
Of which are:
Current lease liability 1,830,701 1,734,848
Non-current lease liability 6,852,031 7,026,167
8,682,732 8,761,015
Maturity analysis - contractual undiscounted cashflows

Less than one year 2,649,801 2,557,743
One to five years 7,110,076 6,963,768
More than five years 3,124,101 7,969,041
Total undiscounted lease liabilities as at December 31, 12,883,978 17,490,552
22. OTHER LIABILITIES
Mark-up / Return / Interest payable in local currency 194,680,604 126,228,969

Mark-up / Return / Interest payable in foreign currency 2,611,281 655,802
Unearned commission and income on bills discounted 124,131 271,126
Accrued expenses 13,907,160 13,955,633
Advance payments 387,084 372,406
Acceptances 8,100,364 20,644,122
Unclaimed dividends 174,709 181,851
Mark to market loss on forward foreign exchange contracts 6,676,880 125,371
Branch adjustment account 1,659,214 1,916,850
Payable to defined benefit plan:
Pension fund 40.4 22,944,893 23,063,894
Post retirement medical benefits 40.4 34,833,112 29,176,898
Benevolent scheme 40.4 1,613,699 1,697,838
Gratuity scheme 40.4 4,975,497 4,100,617
Compensated absences 40.4 9,632,176 8,734,235
Provision against off-balance sheet obligations 627,494 627,494
Provision against contingencies 22.1 4,698,118 4,170,799
Staff welfare fund 371,257 371,257
Liabilities relating to barter trade agreements 4,321,484 3,629,389
Payable to brokers 735,663 350,446
Payable to customers 516,017 940,854
PIBs shortselling 10,241,337 11,043,029
Others 19,040,688 19,297,251
342,872,862 271,556,131

2023 2022
Note
------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------
22.1 Provision against contingencies

Charge during the year 384,838 165,423
Other movement 142,481 200,000
Closing balance 22.1.1 4,698,118 4,170,799
22.1.1 This represents provision made on account of regulatory violations and reported instances of financial
improprieties for which investigations are in progress.
23. SHARE CAPITAL
23.1 Authorized Capital

2023 2022 2023 2022
--------- (Number of shares) ---------
------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------
2,500,000,000 2,500,000,000 Ordinary shares of Rs. 10 each 25,000,000 25,000,000
23.2 Issued, subscribed and paid up
2023 2022 2023 2022

--------- (Number of shares) --------- Ordinary shares
------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------
140,388,000 140,388,000 Fully paid in cash 1,403,880 1,403,880

1,987,125,026 1,987,125,026 Issued as bonus shares 19,871,251 19,871,251
2,127,513,026 2,127,513,026 21,275,131 21,275,131
The Federal Government and Pakistan Sovereign Wealth Fund (PSWF) holds 75.60% (2022: Federal
Government and SBP 75.60%) shares of the Bank.
23.3 The Pakistan Sovereign Wealth Fund Act, 2023 became effective during the current period. Under the said Act,
the SBP’s shareholding in the Bank stands transferred to the Pakistan Sovereign Wealth Fund (PSWF).
2023 2022
23.3 Shares of the Bank held by subsidiary and associate
----------------------------------------------------------------------------------------------------------------------------------------(Number of shares)---------------------------------
Following shares were held by the associate of the Bank as of year end:
First Credit & Investment Bank Limited 70,000 70,000

70,000 70,000
24. RESERVES
24.1 Exchange translation reserve
This comprises all foreign currency differences arising from the translation of the financial statements of foreign
operations.

24.2 Statutory reserve
Every bank incorporated in Pakistan is required to transfer 20% of their profits to a statutory reserve until the
reserve equals share capital, thereafter 10% of the profits of the Bank are to be transferred to this reserve.
2023 2022
Note
------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------
25. SURPLUS ON REVALUATION OF ASSETS
Surplus / (deficit) on revaluation of:

- Available for sale securities 10.1 33,119,281 (7,455,191)
- Fixed Assets 25.1 48,300,131 48,590,472
- Non-banking assets accquired in satisfaction of claims 25.2 2,803,228 2,520,000
- On securities of associates and joint venture (337,236) (1,507,560)
83,885,404 42,147,721
Deferred tax on surplus on revaluation of:
- Available for sale securities (16,223,312) 3,208,915
- Fixed Assets 25.1 (3,322,829) (3,061,347)
- Non-banking assets accquired in satisfaction of claims 25.2 (106,848) (21,752)
(19,652,989) 125,816
64,232,415 42,273,537
25.1 Surplus on revaluation of fixed assets
Surplus on revaluation of fixed assets as at January 1 47,733,682 44,320,452

Recognised during the year 17,842 3,691,784
Transferred to unappropriated profit in respect of incremental
depreciation charged during the year - net of deferred tax (181,545) (197,684)
Adjustment - 68,260
Related deferred tax liability on incremental
depreciation charged during the year (174,426) (149,130)
Surplus on revaluation of fixed assets as at December 31 47,395,553 47,733,682
- revaluation as at January 1 (3,061,347) (2,537,701)

- revaluation recognised during the year (8,743) (412,499)
- rate adjustment (427,165) (260,277)
- incremental depreciation charged during the year 174,426 149,130
(3,322,829) (3,061,347)
Share of surplus on revaluation of fixed assets of associates and joint venture 904,578 856,790
44,977,302 45,529,125

2023 2022
Note
------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------
25.2 Surplus on revaluation of non-banking assets acquired in
satisfaction of claims
Surplus on revaluation as at January 1 2,520,000 2,863,886

Surplus / (deficit) recognised during the year 283,228 (343,886)
Surplus on revaluation as at December 31 2,803,228 2,520,000

- revaluation as at January 1 (21,752) (52,732)
- revaluation recognised during the year (82,060) 42,022
- Rate adjustment (3,036) (11,042)
(106,848) (21,752)
2,696,380 2,498,248
26. CONTINGENCIES AND COMMITMENTS
Guarantees 26.1 346,487,980 377,561,372

Commitments 26.2 2,362,684,359 2,373,285,184
Other contingent liabilities 26.3 26,628,229 26,619,691
2,735,800,568 2,777,466,247
26.1 Guarantees:
Financial guarantees 227,063,459 287,741,990

Performance guarantees 119,424,521 89,819,382
346,487,980 377,561,372
26.2 Commitments:
Documentary credits and short-term trade-related transactions

- letters of credit 1,633,847,479 1,696,635,726

- forward foreign exchange contracts 26.2.1 655,935,358 570,881,591
- forward government securities transactions 26.2.2 27,318,929 54,568,834
- forward lending 26.2.3 44,432,555 50,363,949

- operating fixed assets 1,129,442 798,234
Other commitments 26.2.4 20,596 36,850

2,362,684,359 2,373,285,184
26.2.1 Commitments in respect of forward foreign exchange contracts
Purchase 412,870,783 368,380,755

Sale 243,064,575 202,500,836
655,935,358 570,881,591
Commitments for outstanding forward foreign exchange contracts are disclosed in these consolidated financial
statements at contracted rates. Commitments denominated in foreign currencies are expressed in rupee terms
at the rates of exchange prevailing at the statement of financial position date.

2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
26.2.2 Commitments in respect of forward government securities transactions
Purchase 11,493,136 10,988,627

Sale 15,825,793 43,580,207
27,318,929 54,568,834
Commitments for outstanding forward government securities transactions are disclosed in these consolidated
financial statements at contracted rates.
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
26.2.3 Commitments in respect of forward lending
Undrawn formal standby facilities, credit lines and other commitments to lend 44,432,555 50,363,949
These represent commitments that are irrevocable because they cannot be withdrawn at the discretion of the
bank without the risk of incurring significant penalty or expense.
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
26.2.4 Other commitments
Professional services to be received 20,596 36,850
26.3 Other contingent liabilities
26.3.1 Claim against the Bank not acknowledged as debt 26,628,229 26,619,691
26.3.2 Claims against the Bank not acknowledged as debts includes claims relating to former Mehran Bank Limited
amounting to Rs. 1,597 million (2022: Rs. 1,597 million).
26.3.3 Taxation
a) The return of income for tax year 2023 has been filed which is treated to be deemed assessment order.
b) Taxation Officer, following the instructions / directions of the learned CIRA, has passed the appeal effect
orders for tax years 2019, 2020 and 2022 wherein the tax liability / (refund) has been assessed at Rs.
(1,852) million, Rs.1,997 million and Rs. (8,774) million.respectively
c) Honourable ATIR has passed appellate orders for tax year 2006 and 2007 against monitoring orders and
held that the proceedings are time barred. However, the orders of the DCIR remanded back to the
assessing officer with the instruction to proceed further if any information is already available with the tax
department.
d) Honourable ATIR has passed appellate order for tax year 2016 against monitoring order and remanded
back the issues to the assessing officer for reverification of the facts following the instructions of ATIR.
e) The aggregate effect of contingencies as on December 31, 2023, including amount of Rs. 1,912 million
(December 31, 2022: Rs. 1,912 million) in respect of indirect tax issues, amounts to Rs. 34,730 million
(December 31, 2022: Rs. 27,159 million). No provision has been made against these contingencies, based
on the opinion of tax consultant of the Bank, who expect favorable outcome upon decisions of pending
appeals.

26.3.4 Contingencies in respect of employees benefits and related matters
The following are the details of the contingencies arising out of the various legal cases pending adjudication in
respect of employees’ benefits and related matters. The Bank considers that except for Pensionary benefits
note 26.3.4.1, the financial impact of other matters is impracticable to determine with sufficient reliability.
26.3.4.1 Pensionary benefits to retired employees
In 1977 the Federal Government vide letter No. 17 (9) 17 XI / 77 dated November 30, 1977, addressed to the
Pakistan Banking Council, directed that all executives / officers of all the nationalized banks would be paid
pension as calculated at 70% of average emoluments upon completion of 30 years of qualifying service of
employees and where qualifying service was less than 30 years but not less than 10 years, proportionate
reduction in percentage was to be made. This pension scheme was made applicable with effect from May 01,
1977.
In the year 1997, the Banks Nationalization Act, 1974 (“BNA, 1974”) was substantially amended whereby the
Pakistan Banking Council was abolished and the Board of Directors of the nationalized banks were empowered
/ mandated respectively to determine personnel policies with the President of the Bank deciding the
remuneration and benefits of the employees in accordance with policies determined by the Board. In the year
1999, by virtue of the said amendments in BNA, the Board of Directors of the Bank approved the Revised Pay
Structure for the officers / executives of the Bank with effect from January 01, 1999 vide Circular No. 37/1999,
whereby the basic salary was increased by 110 % to 140% and besides giving multifarious benefits to its
employees, formula for monthly gross pension was revised. However, the amount of gross pension on the basis
of existing Basic Pay and existing formula was protected.
A number of Bank's employees, after attaining the age of superannuation filed Writ Petitions before the Lahore
High Court and the Peshawar High Court, praying for re-calculation of their pensionary benefits and increases in
accordance with the Bank Circular No. 228 (C) dated December 26, 1977 and furthermore, for allowing the
increases in their pension as per the increases allowed by the Federal Government to its employees. This
litigation started in the year 2010 and 2011.
The Peshawar High Court, in terms of judgment dated June 03, 2014, dismissed the petition while observing
that the petition was hit by laches and that the petitioners could not claim the benefits granted to the similarly
placed employees of other institutions who were governed through different Statutes and Service Rules.
The Lahore High Court vide its judgement dated January 15, 2016, allowed the Writ Petitions on the same
matter and the Bank was directed to release the pensionary benefits of the petitioners. The said order was
assailed by the Bank by filing Intra Court Appeals in January 2016 which were dismissed by the Lahore High
Court, Lahore, through its judgement dated January 16, 2017. The Bank assailed the said judgement by filing
appeals in the Supreme Court of Pakistan.
The Honorable Supreme Court of Pakistan after hearing the arguments of both parties, vide its judgement dated
September 25, 2017 upheld the decision of the Division Bench of the Lahore High Court on the contention of
increase in Bank’s employees’ pension, thereby instructing the Bank to give pension benefits to its employees in
the light of Head Office Instruction Circular No. 228 (C) of 1977. Under this Circular, the pension of employees
was to be calculated at 70% of average emoluments upon completion of minimum qualifying service
requirement, besides requiring the Bank to follow subsequent revisions in pension scheme and rates granted by
the Federal Government to civil servants from time to time as well.
The Bank as well as Federal Government filed review petitions against the aforesaid judgment of the Honorable
Supreme Court of Pakistan and also made an application for constitution of larger bench of the Supreme Court
to hear the review petition, which was reportedly accepted by the Chief Justice. However on March 18, 2019,
the matter came up for hearing before a three member Bench instead of a larger bench. As advised by our legal
counsels, the Bank considers that due to conflicting decision of the other bench of the Supreme Court in a case

which, in all material facts and circumstances, is identical to the Bank’s case and various other legal infirmities
in the judgement as highlighted by the Bank in its Review Petition, the Bank has a reasonably strong case on
legal grounds to convince the Supreme Court for review of its decision. The Review Petition is ongoing and is
expected to be listed for hearing soon.
A related matter has also been appealed in the Supreme Court where the petitioners have asked for increases
in pension in accordance with government increases in Pension for Government employees which is pending
adjudication and a favorable outcome is expected.
In case the above matters are decided unfavorably, the Bank estimates based on the actuarial advice that the
financial impact arising from the additional liability would be approximately Rs. 98,700 million excluding any
penal interest / profit payment (if any) due to delayed payment Pension expense for the current year and
onward will also increase by Rs.13,500 million due to this decision. Based on the opinion of legal counsel, no
provision has been made in these consolidated financial statements for the above-mentioned amount as the
Bank is confident about the favorable outcome of the matter.
26.3.4.2 Regularizing the temporary hires / workers deployed by Service provider companies under outsourcing
arrangements
The Bank outsourced certain non-core jobs to various service provider companies after entering into contracts
with them. The resources deployed by the service provider companies were their employees and the said
companies have had sole administrative control over these resources. Some of these resources filed writ
petitions before the High Courts and National Industrial Relations Commission (NIRC) seeking to be absorbed
by the Bank in its regular service based on grounds that they were in fact employees of the Bank. Presently,
there are 6 cases on appeal pending at the Supreme Court where these have been clubbed to be heard as one.
The Chief Justice of Pakistan has constituted a larger bench comprising of five Judges being headed by himself
for adjudication. The case is ongoing and is presently adjourned for a date to be fixed. A favorable outcome of
this case is expected.
26.3.4.3 Litigation related to management trainee program
Treatment of Non-MTOs (regular employees) at Par with the MTOs (also appointed in regular cadres) -
Litigation arising out of order dated September 21, 2016 passed by the Supreme Court in our CA No.1644/2013
out of our CPLA No. 805/2013 filed against order dated March 13, 2013 of the Division Bench of Sindh High
Court, Sukkur in CP No. D-417/2010 (the “Decision”).
Mr. Ashfaq Ali and three (3) others filed a CP No. D-417/2010 before the Sindh High Court, Bench at Sukkur
while praying to treat them equally in respect of remunerations with other employees (MTOs) having same
grade, nature of job and qualification.
The Honorable Division Bench at Sukkur, vide order dated March 13, 2013, directed the Bank to ensure equal
treatment to the petitioners with similarly placed employees without any discrimination.
Certain employees filed petitions in the Honorable High Court of Peshawar who also gave its decision in favor of
the petitioners. Review petition filed in the Honorable Supreme Court of Pakistan by the Bank was also
dismissed.
Last year, the Bank entered into out of court settlements which have successfully been executed with many
Non-MTO employees ('petitioners‘) and accordingly compromise agreements ('the agreement‘), offering waiver
of loans, increase in basic salaries and provision of other allowances, were signed with those petitioners who
have withdrawn their cases against the Bank. Simultaneously the Bank continues to make payments to
claimants as per any court orders from time to time.

26.4 Foreign Exchange repatriation case
While adjudicating Foreign Exchange repatriation cases of exporter namely: M/S Fateh Textile Mills Limited, the
Foreign Exchange Adjudicating Court of the State Bank of Pakistan has also adjudicated penalty of Rs. 1,020
million, arbitrarily on the Bank. The Bank has filed appeals before the Appellate Board and Constitutional
Petitions in the Honorable High Court of Sindh against the said judgments. The Honorable High Court has
granted relief to the Bank by way of interim orders
As advised by our counsel, NBP has also filed a Constitutional Petition challenging the constitution of the
Appellate Board by the Commission and has obtained restraining order on the ground that the Appellate Board
constituted by the Commission lacks legal merit in the light of Supreme Court ruling. Our counsel, Mr. Rashid
Anwar, Advocate has concluded his arguments in respect of the Foreign Exchange Regulation Appellate Board
constitution. However, another petition filed by another company whereby challenging the constitutionality of the
Competition Act was also tagged with the petitions filed by the banks.
Based on merits of the appeals management is confident that these appeals shall be decided in favor of the
Bank and therefore, no provision has been made against the impugned penalty.
26.5 Compliance and risk matters relating to anti-money laundering at the New York Branch
26.5.1 With close oversight from the Board of Directors and Head Office Senior Management, the New York Branch
completed remedial actions pursuant to the public enforcement actions issued by the New York State
Department of Financial Services and the Federal Reserve Bank. Head Office and the Board will continue to
maintain close oversight of the Branch, which has made significant progress in enhancing its compliance
program. The actions implemented by the Branch and their associated validation by Internal Audit continue to
remain subject to review by its regulators.
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
27. MARK-UP / RETURN / INTEREST EARNED
On:
a) Loans and advances 221,750,632 141,345,000
b) Investments 774,057,450 348,343,571
c) Lendings to financial institutions 27,987,718 13,004,206
d) Balances with banks 1,338,862 883,138
1,025,134,662 503,575,915
28. MARK-UP / RETURN / INTEREST EXPENSED
Deposits 364,955,254 209,559,709

Borrowings 6,988,812 5,116,553
Cost of foreign currency swaps against foreign currency deposits / borrowings 14,293,880 10,026,057
Finance charge on lease liability against right of use assets 843,098 877,000
Securities sold under repurchase agreements 468,699,346 160,894,929
855,780,390 386,474,248

2023 2022
Note
------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------
29. FEE AND COMMISSION INCOME
Branch banking customer fees 1,836,285 1,644,009

Consumer finance related fees 537,528 525,249
Card related fees (debit cards) 3,018,522 2,372,961
Credit related fees 355,727 399,736
Investment banking fees 479,928 767,814
Commission on trade 2,431,771 2,120,399
Commission on guarantees 815,499 742,496
Commission on cash management 98,999 53,907
Commission on remittances including home remittances 1,851,419 1,648,416
Commission on bancassurance 227,995 308,736
Commission on government transactions 10,319,641 10,506,945
Management Fee & Sale Load 1,936,252 1,307,353
Brokerage Income 89,116 72,177
Others 137,614 87,202
24,136,296 22,557,400
30. GAIN ON SECURITIES - NET
Realised 30.1 4,447,398 1,746,693

Unrealised - held for trading 10.1 (28,025) (1,065,797)
Unrealised - Shortselling 1,873 442,320
4,421,246 1,123,216
30.1 Realised gain on:
Federal Government Securities 1,289,150 121,098

Shares and mutual funds 3,201,890 1,625,517
Foreign Securities (43,642) 78
4,447,398 1,746,693
31. OTHER INCOME
Rent on property 74,028 33,455

Gain on sale of fixed assets - net 224,324 17,005
Postal, SWIFT and other charges recovered / reversed 131,783 48,716
Compensation for delayed delivery of vehicles 1,009 -
Compensation for delayed tax refunds 31.1 1,320,345 1,588,150
Gain on derecognition on right of use assets - 1,690
Tender money 2,307 576
Commission on IPS non-competative bids - 5,599
Gain on closure of subsidiary and branch - 67,007
Incentive on Home remittance 13,102 -
Deferred Income on Sale of Fixed Asset 9,851 -
Others 19,700 27,900
1,796,449 1,790,098
31.1 This represents compensation for delayed refunds determined under Section 171 of Income Tax Ordinance
2001.

2023 2022
32. OPERATING EXPENSES Note
------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------
Total compensation expenses 32.1 57,298,224 49,591,298
Property expense
Rent and taxes 1,254,651 1,149,827

Insurance 32.2 62,440 66,842
Utilities cost 2,902,890 2,176,886
Security (including guards) 4,128,206 3,654,635
Repair and maintenance (including janitorial charges) 1,481,169 1,158,187
Depreciation on non banking assets 10,045 15,717
Depreciation on Ijarah assets 1,065 53,953
Depreciation on ROUA 2,165,226 2,306,599
12,503,286 11,040,866
Information technology expenses
Software maintenance 2,810,861 1,958,366

Hardware maintenance 138,307 121,317
Amortisation 324,753 365,818
Network charges 892,901 763,928
IT Manage Services 2,611,550 1,576,444
7,389,720 5,179,465
Other operating expenses
Directors' fees and allowances 88,232 25,772

Directors' fees and allowances - subsidaries 25,870 13,265
Fees and allowances to Shariah Board 17,423 16,667
Legal and professional charges 2,185,861 1,215,057
Outsourced services costs 32.3 931,924 702,378
Travelling and conveyance 1,909,797 1,287,738
NIFT clearing charges 255,128 218,640
Depreciation 1,485,541 1,561,239
Training and development 112,140 55,923
Postage and courier charges 417,253 314,401
Communication 1,265,355 580,056
Stationery and printing 2,095,876 1,359,965
Marketing, advertisement and publicity 1,159,337 936,407
Donations 32.4 45,104 109,076
Auditors' remuneration 32.5 365,766 246,015
Fixed Assets / Non-banking asset deficit - 141,403
Financial charges on leased assets 71,513 72,086
Entertainment 342,228 273,283
Clearing charges, verification and licence fee 574,953 532,198
Subscription 509 1,125
Brokerage 148,942 105,290
Insurance general 748,936 572,536
Vehicle expenses 257,265 278,756
Deposit premium expense 1,392,861 1,813,582
Repairs and maintenance general 1,388,748 945,805
Others 681,419 397,992
17,967,981 13,776,655
Grand Total 95,159,211 79,588,284

2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
32.1 Total compensation expense
i) Fixed 16,773,229 15,919,747
ii) Variable
of which;
a) Cash Bonus / Awards etc. 5,596,227 5,158,442
Charge for defined benefit plan 11,918,752 8,354,267
Charge for defined benefit plan - Subsidiaries 80,288 72,269
Rent & house maintenance 6,437,798 5,980,507
Utilities 2,694,045 2,139,441
Medical 4,618,445 3,885,392
Conveyance 4,256,728 3,749,778
Club Membership & Subscription 93,718 140,451
Education Allowance 1,818,799 1,443,112
Insurance 480,752 485,749
Honorarium to Staff and Staff Welfare 451,129 262,284
Overtime 45,892 45,255
Special Duty Allowance 3,621 2,408
Washing Allowance 14,208 15,044
Key Allowance 70,501 71,914
Unattractive Area Allowance 68,690 61,969
Leave Encashment 12,021 12,967
Teaching Allowance 10,864 10,590
Incentive on CASA deposits mobilization 35,378 23,739
Meal Allowance 246,262 249,065
Staff Incentive 8,421 -
Liveries 19 62
Inflationary Allowance 648,818 840,224
Saturday Allowances 162,405 149,162
Severe Winter Allowance 54,480 54,659
Hill Allowance 34,530 35,176
ATM Cash Replenish Allowance 20,593 14,977
PhD Allowance 10,098 10,441
Other retirement benefits for international branches 132,036 85,969
Reimbursement of visa fees etc - 13,620
Recruiting expenses - 7,732
Others 499,477 294,886
57,298,224 49,591,298
57,298,224 49,591,298

32.2 This includes Rs. 3.422 million (2022: Rs.3.422 million) insurance premium against directors' liability insurance.
32.3 Total cost for the year included in other operating expenses relating to outsourced activities is Rs. 931.9 million
(2022: Rs. 702.4 million). Out of this cost, Rs. 919.4 million (2022: Rs. 693.2 million) pertains to the payment to
companies incorporated in Pakistan and Rs. 12.5 million (2022: Rs. 9.1 million) pertains to payment to
companies incorporated outside Pakistan. Total Cost of outsourced activities for the year given to related parties
is Rs. Nil (2022: Rs. Nil). Outsourcing shall have the same meaning as specified in Annexure-I of BPRD Circular
No. 06 of 2017. The material outsourcing arrangements along with their nature of services are as follows:
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
Name of Company Nature of Services
HTECH Solutions (Private) Limited Call center management 122,541 81,962

122,541 81,962
During the year, outsourcing services were hired in respect of sales, call centre services, IT support, data entry,
protocol services, collection services, janitorial & cleaning services and lift operator and engineering services.
32.4 Donations include following amounts:

2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
Description

Family Educational Services Foundation (FESF) - 17,000
Sanjan Nagar Public Education Trust (SNPET) - 10,000
Layton Rahmatullah Benevolent Trust (LRBT) - 5,000
Thardeep Microfinance Foundation (TMF) - 6,000
Rural Community Development Programs (RCDP) - 4,000
Namal Education Foundation (NEF) - 5,197
Ghulam Ishaq Khan Institute of Engineering Sciences and Technology 26,549 9,879
The Citizen Foundation (TCF) 7,255 -
Network of Organizations Working for People with Disabilities Pakistan (NOWPDP) 5,000 -
Women Empowerment Group (WEG) 6,300 -
Total 45,104 109,076
32.4.1 None of the Directors, Sponsor shareholders and Key Management Personnel or their spouse have an interest
in the Donee.

A.F. BDO
Ferguson Ebrahim Total Total
& Co. & Co. 2023 2022
--------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------
32.5 Auditors' remuneration
Audit fee 9,152 7,471 16,623 14,942

Review of interim financial statements 3,202 2,614 5,816 5,228
Fee for audit of domestic branches 7,438 6,072 13,510 12,144
19,792 16,157 35,949 32,314
Special certifications 1,391 1,136 2,527 2,272
21,183 17,293 38,476 34,586
Other special certifications and sundry advisory services 77,209 4,662 81,871 20,739
Sales Tax 10,581 2,341 12,923 6,124
Out-of-pocket expenses 4,500 4,500 9,000 9,000
113,473 28,796 142,269 70,449
Fee for audit of overseas branches including
advisory services and out-of-pocket expenses - - 218,321 171,960
Fee for audit of subsidiaries including
out-of-pocket expenses - - 5,176 3,606
113,473 28,796 365,766 246,015
2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
33. OTHER CHARGES
Penalties imposed by State Bank of Pakistan 270,073 72,347

Penalties imposed by other regulatory bodies (Central Bank of international branches) 15,867 279
Penalties imposed by other regulatory bodies (Regulators of subsidiaries) 20 222
285,960 72,848
34. PROVISIONS & WRITE OFFS - NET
Provisions for diminution in value of investments 10.3 1,437,301 4,376,278

Provisions against loans and advances 11.4 13,320,955 8,011,799
Provision against other assets 16.5.1 239,045 562,955
Provision against contingencies 22.1 384,838 165,423
15,382,139 13,116,455
35. TAXATION
Current
For the year 35.1 53,879,315 31,946,150
Prior years (6,322,999) 3,828,030
47,556,316 35,774,180
Deferred
For the year (5,651,977) (3,126,041)
Prior years 8,073,227 -
2,421,250 (3,126,041)
49,977,566 32,648,139
35.1 Current taxation includes Rs. Nil (2022: Rs. Nil) of overseas branches.

35.2 Relationship between tax expense and accounting profit 2023 2022
------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------
Accounting profit before tax 103,298,963 63,597,150
Income tax at statutory rate @ 39% (2022: 39%) 40,053,643 24,802,889

Super tax at statutory rate @ 10% (2022: 10%) 10,125,309 6,273,716
Increase / (decrease) in taxes resulting from:
Inadmissible items 140,757 35,587
Prior year taxation 1,750,228 3,828,030
Impact of change in tax rate (1,716,671) (2,075,075)
Reduced rate on SME / Housing - (87,432)
Others (375,700) (129,575)
Tax charge for current and prior years 49,977,566 32,648,139
35.3 During the year, in relation to Section 99D of the Income Tax Ordinance, 2001, FBR has issued SRO to impose
an additional windfall tax @ 40% on foreign exchange income of the banks for the accounting years 2021 and
2022. The Bank along with other banks has challenged the law and filed a petition in Sindh High Court. Based
on strong grounds, stay order has also been issued to banks. However, the Bank has, as an abundant caution,
recorded a prior year charge of Rs. 1,750 million in these consolidated financial statements. Similar cases have
also been filed by other banks in Islamabad & Lahore High Courts wherein stay orders have been granted. The
FBR has challenged the stay orders granted by Sindh, Islamabad and Lahore High Courts in Supreme Court of
Pakistan.
2023 2022
Note
------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------
36. BASIC EARNINGS PER SHARE
Weighted average number of ordinary shares (Number in 000's) 2,127,513 2,127,513
Basic earnings per share (Rupees) 24.96 14.49
37. DILUTED EARNINGS PER SHARE
Weighted average number of ordinary shares (adjusted

for the effects of all dilutive potential ordinary shares) (Number in 000's) 2,127,513 2,127,513
Diluted earnings per share (Rupees) 24.96 14.49
38. CASH AND CASH EQUIVALENTS
Cash and balance with treasury banks 7 295,455,482 230,226,311

Balance with other banks 8 43,004,567 19,623,124
Call / clean money lendings 9 9,723 9,723
Call borrowings 18 (19,434,142) (25,810,145)
Overdrawn nostro accounts 18 (19,330,975) -
299,704,655 224,049,013

38.1 Reconciliation of movements of liabilities to cash flow used in financing activities:
2023
Lease Unclaimed
Obligations Dividend
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------

Payment of lease obligation / dividend (3,566,480) (7,142)
Total charges from financing activities (3,566,480) (7,142)
Other charges

Foreign exchange gain 392,592 -
2022
Lease Unclaimed
Obligations Dividend
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------

Payment of lease obligation / dividend (2,680,093) (146)
Total charges from financing activities (2,680,093) (146)
Other charges

Increase in unclaimed dividend 872,775 -
Foreign exchange loss (291,112) -
2023 2022
------------------------------------------------------------------------------------------------------------------------------------------------(Numbers)-----------------------------------
39. STAFF STRENGTH
Permanent 10,020 10,580

On contract 5,673 5,380
Staff strength at the end of the year 15,693 15,960

39.1 In addition to the above, 1,722 (2022: 1,218) employees of outsourcing services companies were assigned to
the Bank as at the end of the year to perform services other than guarding and janitorial services. Out of these,
1,708 employees are working domestically (2022: 1,211) and 14 (2022: 7) abroad respectively.
40. DEFINED BENEFIT PLAN
40.1 General description
General description of the type of defined benefit plan and accounting policy for remeasurements of the net
defined liability / asset is disclosed in note 5.15 to the consolidated financial statements.
40.2 Number of Employees under the scheme
The number of employees covered under the following defined benefit schemes are:
2023 2022
----------------------------------------------------------------------------------------------------------------------------------------------(Numbers)--------------------------------------
Pension fund 9,542 10,018

Post retirement medical scheme 9,542 10,018
Benevolent scheme 9,542 10,018
Gratuity scheme 5,185 4,855
Compensated absences 9,542 10,018
40.3 Principal actuarial assumptions
The actuarial valuations were carried out as at December 31, 2023 using the following significant assumptions:
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Per annum)-------------------------------------
Discount rate 15.50% 14.50%

Expected rate of return on plan assets 15.50% 14.50%
Expected rate of salary increase 15.50% 14.50%
Expected rate of increase in pension 80% for next 53% for next
one year, 11% one year, 10%
onwards onwards
Expected rate of increase in medical benefit 15.50% 14.50%

2023 2022
Post
Post retirement
Pension retirement Benevolent Gratuity Compensated Benevolent Gratuity Compensated
Total Pension fund medical Total
fund medical scheme scheme absences scheme scheme absences
scheme
40.4 Reconciliation of (receivable from) / payable to scheme
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------------------------------------------------------------------------------------------
defined benefit plans
Present value of obligations 103,591,193 34,833,112 1,613,699 4,575,660 9,632,176 154,245,840 89,128,297 29,176,898 1,697,838 3,767,858 8,734,235 132,505,126
Fair value of plan assets (80,646,300) - - - - (80,646,300) (66,064,403) - - - - (66,064,403)
Holding Company 22,944,893 34,833,112 1,613,699 4,575,660 9,632,176 73,599,540 23,063,894 29,176,898 1,697,838 3,767,858 8,734,235 66,440,723
Subsidaries - - - 399,837 - 399,837 - - - 332,759 - 332,759
Payable / (Receivable) 22,944,893 34,833,112 1,613,699 4,975,497 9,632,176 73,999,377 23,063,894 29,176,898 1,697,838 4,100,617 8,734,235 66,773,482
40.5 Movement in defined benefit obligations
Obligations at the beginning of the year 89,128,297 29,176,898 1,697,838 3,767,858 8,734,235 132,505,126 79,608,695 24,516,717 1,778,825 3,168,258 9,952,554 119,025,049
ANNUAL REPORT 2023

Other payments 137,070 - - - - 137,070 - - - - - -
Adjustment against contigency reserve 158,428 34,152 332 - 19,326 212,238 240,914 52,731 328 - 31,837 325,810
Interest cost 12,665,122 4,137,561 232,065 536,448 1,247,384 18,818,580 9,162,030 2,808,493 196,854 364,696 1,149,972 13,682,045
Re-measurement loss / (gain) - Profit and Loss - - - - (731,709) (731,709) - - - - (2,080,302) (2,080,302)
Re-measurement loss / (gain) - OCI 3,955,976 1,982,623 (165,170) (272,803) - 5,500,626 1,230,522 1,730,236 (134,853) (109,288) - 2,716,617
Obligations at the end of the year 103,591,193 34,833,112 1,613,699 4,575,660 9,632,176 154,245,840 89,128,297 29,176,898 1,697,838 3,767,858 8,734,235 132,505,126
40.6 Movement in fair value of plan assets
Fair value at the beginning of the year 66,064,403 - - - - 66,064,403 61,773,750 - - - - 61,773,750
Interest income on plan assets 9,552,737 - - - - 9,552,737 7,247,610 - - - - 7,247,610
Contribution by the Bank - net 1,403,168 - - - - 1,403,168 1,345,187 - - - - 1,345,187
Benefits paid (3,565,262) - - - - (3,565,262) (3,267,938) - - - - (3,267,938)
Benefits paid on behalf of fund 1,795,181 - - - - 1,795,181 1,738,818 - - - - 1,738,818
Actuarial gain / (loss) on assets 5,396,073 - - - - 5,396,073 (2,773,024) - - - - (2,773,024)
Fair value at the end of the year 80,646,300 - - - - 80,646,300 66,064,403 - - - - 66,064,403
Movement in (receivable) / payable under defined benefits scheme
Opening balance 23,063,894 29,176,898 1,697,838 3,767,858 8,734,235 66,440,723 17,834,945 24,516,717 1,778,825 3,168,258 9,952,554 57,251,299
Charge / (reversal) for the year 4,361,017 4,908,770 274,977 1,080,145 528,027 11,152,936 2,949,394 3,665,128 260,475 837,816 (919,031) 6,793,782
Past Service due to early retirement gratuity - 14,663 503 136,889 613,761 765,816 1,119,100 441,385 - - - 1,560,485
Adjustment against contigency Reserve 158,428 34,152 332 - 19,326 212,238 240,914 52,731 328 - 31,837 325,810
Contribution by the bank - net (1,403,168) - - - - (1,403,168) (1,345,187) - - - - (1,345,187)
Re-measurement loss / (gain) recognized in OCI during the year (1,440,097) 1,982,623 (165,170) (272,803) - 104,553 4,003,546 1,730,236 (134,853) (109,288) - 5,489,641
Benefits paid on behalf of fund (1,795,181) (1,283,994) (194,781) (136,429) (263,173) (3,673,558) (1,738,818) (1,229,299) (206,937) (128,928) (331,125) (3,635,107)
22,944,893 34,833,112 1,613,699 4,575,660 9,632,176 73,599,540 23,063,894 29,176,898 1,697,838 3,767,858 8,734,235 66,440,723
40.7 Charge for defined benefit plans
40.7.1 Cost recognised in profit and loss
Other Payments 137,070 - - - - 137,070 - - - -
Actuarial loss / (gain) recognized - Profit and Loss - - - - (731,709) (731,709) - - - - (2,080,302) (2,080,302)
Net interest on defined benefit asset / liability 3,112,385 4,137,561 232,065 536,448 1,247,384 9,265,843 1,914,420 2,808,493 196,854 364,696 1,149,972 6,434,435
4,361,017 4,923,433 275,480 1,217,034 1,141,788 11,918,752 4,068,494 4,106,513 260,475 837,816 (919,031) 8,354,267
40.7.2 Re-measurements recognised in OCI during the year
Loss / (gain) on obligation

- Financial assumptions 6,789,410 1,411,977 (82,933) (19,843) - 8,098,611 4,049,273 1,259,537 (278,861) 45,522 - 5,075,471
- Experience adjustment (2,833,434) 570,646 (82,237) (252,960) - (2,597,985) (2,818,751) 470,699 144,008 (154,810) - (2,358,854)
Return on plan assets over interest income (5,396,073) - - - - (5,396,073) 2,773,024 - - - - 2,773,024
Total re-measurements recognised in OCI (1,440,097) 1,982,623 (165,170) (272,803) - 104,553 4,003,546 1,730,236 (134,853) (109,288) - 5,489,641
335
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
40.8 Components of plan assets - Pension fund
Cash and cash equivalents - net 430,000 284,476

Government securities 63,789,305 53,824,866
Shares 7,509,967 5,565,760
Non-Government debt securities 100,000 100,000
Mutual funds 8,817,027 6,289,301
80,646,299 66,064,403
40.8.1 The Funds primarily invests in government securities which do not carry any significant credit risk. These are
subject to interest rate risk based on market movements. Investment in term finance certificates are subject to
credit risk and interest rate risks, while equity securities are subject to price risk. These risks are regularly
monitored by Administrators of the Pension fund.
40.9 Sensitivity analysis
The increase / (decrease) in the present value of defined benefit obligations as a result of change in each
assumption is summarised as below:
2023
Pension Post retirement Benevolent Gratuity Compensated

Total
fund medical scheme scheme fund absences
---------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------
1% increase in discount rate (9,103,581) (3,717,246) (77,359) (467,512) (618,856) (13,984,554)

1% decrease in discount rate 10,830,235 4,539,943 85,479 542,519 699,037 16,697,213
1 % increase in expected rate of salary increase 3,739,334 1,112,624 2,138 559,557 736,133 6,149,786
1 % decrease in expected rate of salary increase (3,400,875) (1,008,614) (2,385) (489,081) (661,895) (5,562,849)
1% increase in expected rate of pension increase 7,240,026 1,558,832 - - - 8,798,858
1% decrease in expected rate of pension increase (6,280,959) (1,356,049) - - - (7,637,008)
1% increase in expected rate of medical benefit increase - 1,648,940 - - - 1,648,940
1% decrease in expected rate of medical benefit increase - (1,401,261) - - - (1,401,261)
40.10 Expected contributions to be paid to the fund in the next financial year 1,682,347
40.11 Expected charge for the next financial year 13,774,701
40.12 Maturity profile
The weighted average duration of the obligation
Years
Pension fund 9.50
Post retirement medical scheme 11.85
Benevolent scheme 5.05
Gratuity scheme 11.04
Compensated absences 6.84

40.13 Funding Policy
Pension Fund - Bank's current assets and its percentage is given below.
Amount Percentage
Current Assets (Rupees in ‘000)
Cash and cash equivalents - net 430,000 0.5%

Government Securities 63,789,305 79.1%
Shares 7,509,967 9.3%
Non-Government Debt Securities 100,000 0.1%
PLS - Term Deposit Receipts - 0.0%
Mutual Funds 8,817,027 10.9%
80,646,299 100.0%
Bank will continue to invest with the same percentage in the asset categories mentioned but increase the assets
gradually so that there is no deficit in the pension fund.
40.14 The significant risks associated with the staff retirement benefit schemes are as follows:
Asset volatility The risk arises when the future earnings are lower than expectation. This
risk is measured at a plan level over the obligation period of the current
population. The company assets are either invested in fixed securities or
cash.
Changes in bond yields The risk arises when the actual return on plan assets is lower than
expectation.
Inflation risk The most common type of retirement benefit is one where the benefit is
linked with last drawn salary. The risk arises when the actual increases
are higher than expectation and impacts the liability accordingly.
Life expectancy / Withdrawal rate The risk arises when the actual lifetime of retirees is longer than
expectation. This risk is measured at the plan level over the entire retiree
population. The risk of actual withdrawals varying with the actuarial
assumptions can impose a risk to the benefit obligation. The movement
of the liability can go either way.
Investment Risk The risk arises when the actual performance of the investments is lower
than expectation and thus creating a shortfall in the funding objectives.
41. DEFINED CONTRIBUTION PLAN
Provident Fund
The NBP employees Provident Fund was created under National Bank of Pakistan Employees Provident Fund
Rules on April 01, 1950 under the Provident Fund Act, 1925. The Rules have been superseded by revised NBP
Employees’ Provident Fund Rules which came into force on January 01, 1958.
As per rules, the Officers, Executives and Clerical and Non Clerical staff in regular cadre make monthly
contribution of 10% and 12.5% of their basic salary respectively towards the fund and the bank has to pay
interest on balances of member’s provident fund half yearly.
This scheme covers 9,313 employees (2022: 9,737 employees).

42. COMPENSATION OF DIRECTORS AND KEY MANAGEMENT PERSONNEL

42.1 Total Compensation Expense
2023
Directors
Members President / Key Other Material
Items Non- Shariah CEO (note Management Risk Takers /
Chairman
Executives Board 42.1.1) Personnel Controllers
-----------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------------
Managerial Remuneration - - - - -
i) Fixed - - 1,972 9,405 193,791 1,173,963
of which - - - - -
Rent & house maintenance - - 1,085 6,001 106,585 548,915
Utilities - - 394 2,182 38,697 192,204
Medical - - 325 1,800 32,471 212,105
Conveyance - - 444 1,501 37,840 284,696
Others * - - 130 35,136 14,090 223,445
Total 11,786 76,446 17,123 62,940 648,703 3,724,189
Number of Persons 1 **6 5 1 29 293
42.1.1 This represents amount of compensation paid to President in the capacity of Acting President uptill August 6,
2023 as per entitlement of SEVP / Group Chief and also included payment of Gratuity as end service benefit
(Rs. 33.416 million included in Others). Upon receipt of Federal Government Notification # F.1 (9) BKG-III/2022-
1119 dated August 7, 2023, of his appointment as President / CEO of the Bank, the payment of salary as per
entitlement of SEVP / Group Chief was discontinued and Board of Directors in its 352nd meeting dated
September 20, 2023, approved adjustable monthly advance equivalent to the salary and benefits of former
President till approval of his compensation package from the shareholders and an amount of Rs. 22.963 million
has been paid from August 07, 2023 till December 31, 2023 to the President which will be adjusted from his
salary on approval.
* The President and certain executives are also provided with free use of Bank's cars, household equipment, mobile phones and free
membership of clubs.
** Mr. Asif Jooma retired on March 08, 2023.
42.1.2 The total amount of deferred bonus as at December 31, 2023 for the Key Management Personnel and other
Material Risk Takers (MRT) / Material Risk Controllers (MRC) is Rs. 233.6 million (2022: Rs. 149.7 million). The
deferred bonus is held in a trust fund.
Performance bonus is accounted for on payment basis

2022
Directors
Members Key Other Material
President /
Items Non- Shariah Management Risk Takers /
Chairman CEO
Executives Board Personnel Controllers
-----------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------------
i) Fixed - - 1,793 28,756 231,791 744,615
ii) Total Variable
of which
Rent & house maintenance - - 986 5,038 106,721 367,150
Utilities - - 305 1,557 32,986 106,573
Medical - - 224 1,145 25,334 112,302
Conveyance - - 408 - 29,957 146,485
Others - - 105 31,151 16,351 141,917
Total 2,705 23,067 16,368 74,592 639,198 2,232,134
Number of Persons 1 6 5 2 23 185

42.2 Remuneration paid to Directors for participation in Board and Committee Meetings
2023
Board Board
SN
Committee Committee
----------------------------------------------------------------------- (Rupees. in '000) -------------------------------------------------------------------
1 Mr. Ashraf Mahmood Wathra 6,720 - - 3,840 - 960 266 11,786
2 Mr. Farid Malik 3,950 2,950 150 3,000 1,350 - 2,171 13,571
3 Mr. Ahsan Ali Chughtai 4,750 3,900 7,000 300 - - 579 16,529
4 Mr. Amjad Mahmood 4,200 3,750 1,200 - 1,750 550 105 11,555
5 Mr. Ali Syed 4,600 3,750 3,750 2,700 1,600 - - 16,400
6 Mr. Nasim Ahmad 4,450 3,600 4,000 - 150 550 4,291 17,041
7 Mr. Asif Jooma*** 600 300 150 300 - - - 1,350
* Allowances include accommodation and travel expenses.

** Amount includes NBP - NY Governance Council (Sub-Committee of BRCC).
*** Retired on March 08, 2023
2022
Board Board
S.No. Name of Director For Board Board Risk & Board HR &
Board Audit Technology & Inclusive
Meetings Compliance Remuneration Allowances** Total Amount Paid
Committee Digitalization Development
Committee Committee
Committee Committee
---------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------------------
1 Mr. Zubyr Soomro * 900 - - 150 - 300 1,355 2,705
2 Mr. Farid Malik 2,250 750 450 750 600 300 1,158 6,258
3 Mr. Tawfiq Asghar Hussain * 900 450 600 - - - - 1,950
4 Mr. Imam Bukhsh Baloch * 900 450 450 - - - 47 1,847
5 Ms. Sadaffe Abid * 900 - - - 150 450 292 1,792
6 Mr. Asif Jooma 2,250 1,200 450 750 - 600 - 5,250
7 Mr. Ahsan Ali Chughtai 2,250 750 900 600 450 450 570 5,970
* Retired on April 16, 2022
** Allowances include accommodation and travel expenses.
*** Amount includes NBP - NY Governance Council (Sub-Committee of BRCC).
42.3 Remuneration paid to Shariah Board Members

2023 2022
Items Resident Non-Resident Resident Non-Resident
Chairman Total Chairman Total
Member Member(s) Member Member(s)
---------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------------------
Retainer Fee & Fixed Remuneration 4,050 5,753 7,320 17,123 4,050 4,998 7,320 16,368
Total Number of Persons 1 1 3 5 1 1 3 5
The above information does not include particulars of subsidiaries.
43. FAIR VALUE MEASUREMENTS
The fair value of quoted securities other than those classified as held to maturity, is based on quoted market
price. Quoted instruments classified as held to maturity are carried at cost. The fair value of unquoted equity
securities, other than investments in associates and subsidiaries, is determined on the basis of the break-up
value of these investments as per their latest available audited financial statements.
The fair value of unquoted debt securities, fixed-term loans, other assets, other liabilities, fixed-term deposits
and borrowings cannot be calculated with sufficient reliability due to the absence of a current and active market
for these assets and liabilities and reliable data regarding market rates for similar instruments.
339
43.1 Fair value of financial assets

The Group measures fair values using the following fair value hierarchy that reflects the significance of the
inputs used in making the measurements:
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are
observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Fair value measurements using input for the asset or liability that are not based on observable market
data (i.e. unobservable inputs).
The table below analyses financial instruments measured at the end of the reporting period by the level in the
fair value hierarchy into which the fair value measurement is categorised:
2023
-----------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------
Investments

Ijarah Sukuks 35,128,974 - 35,128,974 - 35,128,974
Ordinary Shares
Preference Shares
Listed 1,043,797 1,043,797 - - 1,043,797

Sukuk Bonds 47,649,851 13,790,776 33,859,075 - 47,649,851
Investments in mutual funds 4,885,134 - 4,885,134 - 4,885,134
Foreign Securities
4,126,474,490 119,900,011 4,006,574,479 - 4,126,474,490

at fair value
Investments
Market Treasury Bills 161,108 - 161,108 - 161,108
Ijarah Sukuks 14,087,500 - 12,419,631 - 12,419,631
Foreign Securities
Non-Government Debt Securities 1,083 - 1,083 - 1,083
272,951,142 - 252,002,875 - 252,002,875

4,399,425,632 119,900,011 4,258,577,354 - 4,378,477,365
Off-balance sheet financial instruments - measured

at fair value
Foreign exchange contracts purchase and sale 655,935,358 - (6,676,880) - (6,676,880)
Forward government securities transactions 27,318,929 - 3,357 - 3,357

2022
----------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------------------------------
Investments
Ijarah Sukuks 20,178,649 - 20,178,649 - 20,178,649
Ordinary Shares
Preference shares
Listed 1,370,477 1,370,477 - - 1,370,477

Sukuk Bonds 47,204,154 15,167,771 32,036,383 - 47,204,154
Investments in mutual funds 3,733,376 - 3,733,376 - 3,733,376
Foreign Securities
Foreign Government Securities 3,655,766 - 3,655,766 - 3,655,766
3,016,629,787 88,053,818 2,928,575,969 - 3,016,629,787
at fair value
Investments
Ijarah Sukuks 13,130,709 - 12,383,300 - 12,383,300
Foreign Securities - - - - -
Foreign Government Securities 36,096,507 - 37,327,167 - 37,327,167
Non-Government Debt Securities 871 - 871 - 871
457,024,929 - 435,936,503 - 435,936,503
3,473,654,716 88,053,818 3,364,512,472 - 3,452,566,290
Off-balance sheet financial instruments - measured

at fair value
Foreign exchange contracts purchase and sale 570,881,591 - (125,371) - (125,371)
Forward government securities transactions 54,568,834 - (14,626) - (14,626)

Valuation techniques used in determination of fair valuation of financial instruments within level 2 and level 3
Item Valuation approach and input used
Federal Government securities The fair value of Federal Government securities is
determined using the prices / rates available on Mutual
Funds Association of Pakistan (MUFAP) / Reuter page.
Non-Government debt securities The fair value of non-government debt securities is
determined using the prices / rates from MUFAP /
Pakistan Stock Exchange.
Mutual Fund units The fair values of investments in mutual fund units are
determined based on their net asset values as published
on MUFAP.
Ordinary Shares The fair value of Ordinary shares is determined using the
prices from Pakistan Stock Exchange.
Foreign Securities The fair value of foreign securities is determined using the
prices from Reuter page.
Forward foreign exchange contracts and The fair values of forward foreign exchange contracts and
Forward Government securities transactions forward Government securities transactions are
determined using forward pricing calculations.
Fixed assets and non-banking assets acquired Land, buildings and non-banking assets acquired in
in satisfaction of claims satisfaction of claims are revalued on a periodic basis
using professional valuers. The valuation is based on
their assessment of the market value of the assets. The
effect of changes in the unobservable inputs used in the
valuations cannot be determined with certainty.
Accordingly, a qualitative disclosure of sensitivity has not
been presented in these unconsolidated financial
statements.
43.2 Fair value of non-financial assets
Information about the fair value hierarchy of Group's non-financial assets as at the end of the reporting period
are as follows:
2023
--------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------
55,965,195 - - 55,965,195 55,965,195
2022
--------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------
56,125,318 - - 56,125,318 56,125,318
43.3 Certain categories of fixed assets (land and buildings) and non-banking assets acquired in satisfactions of
claims are carried at revalued amounts (level 3 measurement) determined by professional valuers based on
their assessment of the market values.

44. SEGMENT INFORMATION
44.1 Segment Details with respect to Business Activities
2023
International,
Remittance Group
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------------------------------------------------------------------------
Net mark-up / return / profit (288,653,905) 44,446,578 30,024,021 372,043,914 676,660 11,604,875 (787,871) 169,354,272 - 169,354,272
Inter segment revenue - net
ANNUAL REPORT 2023

426,952,717 (44,570,637) (14,722,482) (394,040,795) - (3,783,783) 30,164,980 - - -
Non mark-up / return / interest income 16,879,805 469,040 5,475,249 14,827,098 948,566 379,522 5,792,721 44,772,001 - 44,772,001
Total Income 155,178,617 344,981 20,776,788 (7,169,783) 1,625,226 8,200,614 35,169,830 214,126,273 - 214,126,273
Segment direct expenses 36,682,759 3,763,540 1,353,645 489,431 10,080,124 3,497,535 2,268,320 58,135,354 - 58,135,354
Total expenses 36,682,759 3,763,540 1,353,645 489,431 10,080,124 3,497,535 39,578,137 95,445,171 - 95,445,171
Provisions charge / (reversal) (392,545) 1,421,129 13,619,854 1,778,752 (682,121) 1,173,602 (1,536,532) 15,382,139 - 15,382,139
Profit / (loss) before tax 118,888,403 (4,839,688) 5,803,289 (9,437,966) (7,772,777) 3,529,477 (2,871,775) 103,298,963 - 103,298,963

Cash and bank balances 24,530,869 2,327,011 309,620 253,026,662 45,582,613 10,291,381 2,391,893 338,460,049 - 338,460,049
Investments - - 29,881,757 4,238,437,789 79,712,923 51,544,718 14,597,118 4,414,174,305 - 4,414,174,305
Advances - non-performing 4,151,922 24,855,686 24,997,940 - 64,791,844 1,550,350 100,772,695 221,120,437 - 221,120,437
Provision against Advances (8,543,697) (21,077,228) (34,670,159) - (62,606,767) (1,550,875) (105,383,925) (233,832,651) - (233,832,651)
Advances - net 231,756,865 266,866,574 709,952,733 - 71,324,539 73,124,919 45,047,039 1,398,072,669 - 1,398,072,669
Others 45,196,987 4,100,249 37,794,142 117,135,121 8,304,683 5,155,676 108,049,708 325,736,565 - 325,736,565
Total Assets 3,150,193,779 273,293,834 777,938,252 4,801,030,009 204,924,758 140,116,694 475,856,845 9,823,354,170 (3,154,480,145) 6,668,874,025
Borrowings - 5,171,334 69,017,574 2,085,073,081 18,164,142 - 317,063 2,177,743,194 - 2,177,743,194

Deposits & other accounts 2,948,491,330 - 510,139,226 - 99,315,779 113,801,806 1,361,773 3,673,109,914 - 3,673,109,914
Others 201,702,449 18,201,305 29,358,656 51,337,805 6,639,026 3,494,872 109,872,765 420,606,878 - 420,606,878
Equity - - 28,709 43,645,871 (10,165,565) (400,219) 364,305,244 397,414,040 - 397,414,039
Total Equity & liabilities 3,150,193,779 273,293,834 777,938,252 4,801,030,009 204,924,758 140,116,694 475,856,845 9,823,354,171 (3,154,480,145) 6,668,874,025
Contingencies & Commitments - 90,350,773 1,864,882,509 727,686,842 25,102,178 - 27,778,266 2,735,800,568 - 2,735,800,568
343
2022
344
International,
Remittance Group
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------------------------------------------------------------------------
Net mark-up / return / profit (162,183,572) 25,161,999 36,956,951 205,604,613 4,645,932 7,046,951 (131,207) 117,101,667 - 117,101,667
Non mark-up / return / interest income 16,238,007 491,382 4,513,056 11,563,167 1,816,805 475,181 4,175,473 39,273,071 - 39,273,070
Total Income 96,733,494 (96,531) 8,803,191 10,441,903 6,462,737 5,590,042 28,439,902 156,374,738 - 156,374,737
Segment direct expenses 34,945,405 3,410,975 1,234,244 355,659 7,675,997 3,105,252 1,895,026 52,622,558 - 52,622,558
Total expenses 34,945,405 3,410,975 1,234,244 355,659 7,675,997 3,105,252 28,933,600 79,661,132 - 79,661,132
Provisions charge / (reversal) 39,252 1,823,824 5,642,750 4,066,055 153,204 187,806 1,203,566 13,116,457 13,116,455
Profit / (loss) before tax 61,748,837 (5,331,330) 1,926,197 6,020,189 (1,366,464) 2,296,984 (1,697,264) 63,597,149 - 63,597,150

Cash and bank balances 75,111,055 8,471,928 272,335 116,207,653 41,420,355 6,110,320 2,255,789 249,849,435 - 249,849,435
Investments - - 26,566,790 3,338,860,011 55,396,579 53,920,119 8,192,348 3,482,935,847 - 3,482,935,847
Advances - non-performing 4,107,960 21,853,219 23,902,314 - 53,726,670 654,979 101,479,495 205,724,637 - 205,724,637
Provision against advances (8,972,018) (19,791,641) (23,100,384) - (52,356,953) (655,299) (103,486,991) (208,363,286) - (208,363,286)
Advances - net 217,037,033 238,236,568 609,214,117 - 70,286,002 46,380,995 49,514,403 1,230,669,118 - 1,230,669,118
Others 31,988,215 3,619,414 41,795,925 381,562 6,402,399 2,842,469 170,009,042 257,039,026 - 257,039,027
Total Assets 2,237,900,904 250,327,910 677,849,167 3,486,721,693 173,505,335 109,253,903 391,949,812 7,327,508,724 (2,075,742,831) 5,251,765,894
Borrowings - 6,032,537 78,172,283 1,839,417,048 16,636,856 - 227,063 1,940,485,787 - 1,940,485,787

Deposits & other accounts 2,088,472,344 - 406,454,898 - 75,916,594 93,591,714 837,707 2,665,273,257 - 2,665,273,257
Others 149,428,560 16,604,131 35,169,167 44,395,276 2,896,990 3,373,893 83,838,601 335,706,618 - 335,706,618
NATIONAL BANK
Equity - - 283,293 21,178,677 (18,632,621) 424,441 307,046,441 310,300,231 - 310,300,232
Total Equity & liabilities 2,237,900,904 250,327,910 677,849,167 3,486,721,693 173,505,335 109,253,903 391,949,812 7,327,508,724 (2,075,742,831) 5,251,765,894
-
Contingencies & Commitments - 183,082,386 1,907,266,393 625,450,425 28,425,093 - 33,241,950 2,777,466,247 - 2,777,466,247
PAKISTAN
44.2 Segment details with respect to geographical locations
2023
Asia Pacific
United States
Pakistan (including Europe Middle East Total
of America
South Asia)
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------------------------------------------------------
Net mark-up / return/profit 168,309,375 (1,990,221) 130,022 1,066,688 1,849,409 169,354,272

Total Income
ANNUAL REPORT 2023

212,107,293 (1,733,828) 483,136 1,266,972 2,013,701 214,126,273


Total expenses 85,236,658 2,655,212 1,409,334 4,394,781 1,749,187 95,445,171
Provisions 16,041,077 (155,051) 539 - (534,210) 15,382,139
Profit / (loss) before tax 110,829,558 (4,233,988) (926,737) (3,127,809) 798,724 103,298,963
Investments 4,331,764,495 46,695,908 - 5,301,910 30,411,991 4,414,174,305
Advances - performing 1,341,645,420 43,244,999 3 32 25,894,427 1,410,784,883
Advances - net 1,326,532,700 43,600,519 3 (15,405) 27,954,849 1,398,072,669
Others 317,387,873 4,758,849 130,708 1,726,463 1,732,671 325,736,565
Total Assets 6,551,955,650 119,800,709 10,648,428 15,265,123 62,175,291 6,759,845,205
Borrowings 2,159,579,052 8,299,024 - - 9,865,119 2,177,743,194

Deposits & other accounts 3,573,794,135 46,442,386 4,705,117 7,801,287 40,366,989 3,673,109,914
Others 413,887,822 1,445,240 209,408 1,821,640 3,120,382 419,764,310
Equity 404,572,255 (1,292,319) - (656,741) (5,209,158) 397,414,039
Total Equity & liabilities 6,551,955,650 119,800,709 10,648,428 15,265,123 62,175,291 6,759,845,205
Contingencies & Commitments 2,710,698,390 12,116,117 808,936 430,155 11,746,970 2,735,800,568

345
2022
346
Asia Pacific
United States
Pakistan (including South Europe Middle East Total
of America
Asia)
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------------------------------------------------------------------------------------------------------
Net mark-up/return/profit 112,263,338 1,866,603 44,424 508,358 2,418,944 117,101,667

Total Income 149,719,273 2,630,488 326,031 830,659 2,868,287 156,374,737

Total expenses 71,867,011 2,038,821 1,083,965 3,420,453 1,250,882 79,661,132

Provisions 12,977,499 (143,602) (306) 2,564 280,300 13,116,455
Profit / (loss) before tax 64,874,763 735,269 (757,628) (2,592,358) 1,337,105 63,597,150
Investments 3,425,767,455 37,691,741 - 2,759,589 16,717,062 3,482,935,847
Advances - performing 1,194,733,223 5,207,650 420 561,473 32,805,001 1,233,307,767
Advances - net 1,160,136,105 35,912,085 420 549,072 34,071,436 1,230,669,118
Others 250,490,178 3,964,364 178,130 251,226 2,155,129 257,039,027
Total Assets 5,172,798,448 94,349,749 12,702,731 13,004,881 55,617,853 5,348,473,662
Borrowings 1,923,848,931 1,928,779 - - 14,708,077 1,940,485,787

Deposits & other accounts 2,589,356,663 35,927,275 7,941,305 5,574,521 26,473,493 2,665,273,257
Others 332,799,850 974,569 258,409 667,328 1,006,462 335,706,618
NATIONAL BANK
Equity 326,793,004 (3,745,815) - (1,679,152) (11,067,804) 310,300,232
Total Equity & liabilities 5,172,798,448 94,349,749 12,702,731 13,004,881 55,617,853 5,348,473,662
Contingencies & Commitments 2,749,041,154 9,797,537 1,803,538 6,737,008 10,087,010 2,777,466,247
PAKISTAN
45. TRUST ACTIVITIES

45.1 Endowment Fund
Students Loan Scheme was launched by Government of Pakistan in collaboration with major commercial banks with a
view to extend financial help by way of mark-up free loan to the meritorious students without sufficient resources for
pursuing scientific technical and professional education within Pakistan.
The Scheme is being administered by a high powered committee headed by the Deputy Governor, State Bank of
Pakistan and the Presidents of NBP, HBL, UBL, MCB, ABL and the Deputy Secretary, Ministry of Finance as member
and Senior Director of IH&SME Finance Department (Infrastructure, Housing & SME Finance Department) as a
secretary of the Committee. The State Bank of Pakistan has assigned National Bank of Pakistan to operate the
scheme.
The Committee in its meeting held on August 7, 2001 approved creation of Endowment Fund initially at an amount of
Rs. 500 million, Rs. 396 million were transferred from the old Qarz-e-Hasna (Defunct) Fund, Rs. 50 million contributed
by the Government of Pakistan and Rs. 54 million were contributed by participating banks (HBL, NBP and UBL 25%
each, MCB 17.5% and ABL 7.5%).
The amount of the Endowment Funds in investments stands at Rs. 936.8 million as at December 31, 2023 (2022: Rs.
875.2 million).
45.2 The Bank undertakes Trustee and other fiduciary activities that result in the holding or placing of assets on behalf of
individuals and other organisations. These are not assets of the Bank and, therefore, are not included as such in these
consolidated financial statements. Assets held under trust are shown in the table below:
Pakistan
No. of IPS Market Government
Category Investment Total
Accounts Treasury Bills Ijarah Sukuks
Bonds
--------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------
Companies 42 203,783,170 59,782,300 24,417,400 287,982,870
Employee Funds 47 55,528,855 429,482,600 - 485,011,455
Individuals 2,317 3,008,590 63,200 - 3,071,790
Others 97 164,055,135 544,853,930 - 708,909,065
Total 2,565 475,675,750 1,207,121,330 24,417,400 1,707,214,480

Pakistan
No. of IPS Market Government
Category Investment Total
Accounts Treasury Bills Ijarah Sukuks
Bonds
--------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------
Companies 33 111,150,080 53,771,500 27,417,400 192,338,980
Employee Funds 42 76,006,000 67,408,800 - 143,414,800
Individuals 1,680 723,040 63,000 - 786,040
Others 79 198,320,900 672,294,130 - 870,615,030
Total 1,896 415,050,020 954,364,230 27,417,400 1,396,831,650
46. RELATED PARTY TRANSACTIONS

The Group has related party transactions with its associates, joint ventures, employee benefit plans and its directors
and Key Management Personnel. The details of investments in joint venture and associated undertakings and their
provisions are stated in note 10 of the financial statements of the Group.
The Group enters into transactions with related parties in the ordinary course of business and on substantially the
same terms as for comparable transactions with person of similar standing. Contributions to and accruals in respect of
staff retirement benefits and other benefit plans are made in accordance with the actuarial valuations / terms of the
contribution plan. Remuneration to the executives / officers is determined in accordance with the terms of their
appointment.
Details of transactions with the related parties during the year, other than those which have been disclosed elsewhere
in these consolidated financial statements, are as follows:

2023 2022
348
Key Pension Pension Key Pension
Pension Pension Pension
manage- Joint Fund Fund Provident Other related manage- Joint Fund Provident Other related
Directors Associates Fund Directors Associates Fund Fund (Fixed
ment venture (Fixed (N.I.D.A Fund parties ment venture (N.I.D.A Fund parties
(Current) (Current) Deposit)
personnel Deposit) A/c) personnel A/c)
------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------------------------------------------------------------------------------------------------------
Balances with other banks
In current accounts - - - 425,938 - - - - - - - - 395,137 - - - - -
- - - 425,938 - - - - - - - - 395,137 - - - - -
Investments
Opening balance - - - - - - - - 6,512,634 - - - - - - - - 4,465,809
Investment made during the year - - - - - - - - 100 - - - - - - - - 2,046,825
Investment redeemed / disposed off - - - - - - - - (441,021) - - - - - - - - -
during the year
Transfer in / (out) - net - - - - - - - - (1,150,536) - - - - - - - - -
Closing balance - - - - - - - - 4,921,177 - - - - - - - - 6,512,634
Provision for diminution in value of - - - - - - - - 164,975 - - - - - - - - 461,354

investments
Advances
Opening balance - 339,734 2,665,220 - - - - - 2,085,795 - 347,592 2,934,162 - - - - - 641,482
Addition during the year - 24,777 - - - - - - - - 86,147 - - - - - - 2,229,175
Repaid during the year - (58,217) (124,767) - - - - - (520,649) - (52,240) (268,942) - - - - - (1,435,378)
*Transfer in / (out) - net - (40,506) - - - - - - (1,565,146) (41,765) - 650,516
Closing balance - 265,788 2,540,453 - - - - - - - 339,734 2,665,220 - - - - - 2,085,795
Provision held against advances - - 2,540,453 - - - - - - - - 2,665,220 - - - - - -

Other Assets
Interest / mark-up accrued - - 1,313,344 - - - - - - - - 1,717,167 - - - - - -
Comission paid in advance - - - 35,846 - - - - - - - - - - - - - -
- - 1,313,344 35,846 - - - - - - - 1,717,167 - - - - - -
Borrowings
Opening balance - - - 52,245 - - - - - - - - 35,741 - - - - -
Borrowings during the year - - - 493,964 - - - - - - - - 16,504 - - - - -
Settled during the year - - - - - - - - - - - - - - - - - -
Closing balance - - - 546,209 - - - - - - - - 52,245 - - - - -
Deposits and other accounts
Opening balance - 98,488 3,000 - 27,222 - 257,252 13,263,170 515,559 1,760 131,454 - - 86,264 10,100,000 46,769 12,854,755 43,336,142
Received during the year 11,733 991,165 145,790 - 62,751,350 - 3,883,069 5,369,545 123,529,442 - 885,658 3,000 - 41,951,279 - 8,370,003 5,025,151 5,647,309
Withdrawn during the year (8,103) (996,174) (3,000) (1,450) (62,778,472) - (3,761,343) (5,069,628) (118,318,327) (14) (894,821) - - (42,010,321) (10,100,000) (8,159,520) (4,616,736) (5,669,604)
* Transfer in (out) - net - (20,678) - 1,821 - - - - 3,518,458 (1,746) (23,803) - - - - - - (42,798,288)
NATIONAL BANK
Closing balance 3,630 72,801 145,790 371 100 - 378,978 13,563,087 9,245,132 - 98,488 3,000 - 27,222 - 257,252 13,263,170 515,559
Other Liabilities
Interest / mark-up payable - - 5,892 - - - - - - - - - - - - - - -
- - 5,892 - - - - - - - - - - - - - - -
Contingencis & Commitments

- - - - - - - - - - - - - - - - - -
PAKISTAN
2023 2022
Key Key
manage- Joint Pension Provident Funds / manage- Joint Pension Provident Funds /
Directors Associates Directors Associates
ment venture Fund Fund Others ment venture Fund Fund Others
personnel personnel
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------------------------------------------------
Income
Mark-up / return / interest
earned - - - - - - 422,679 - - 3,384 1 - - 457,362
Dividend income - - - - - - 144,720 - - - 114,405 - - 86,114
ANNUAL REPORT 2023

Rent income / Lighting & Power and Bank charges - - 6,077 - - - 21,027 - - 5,533 - - - -
Expense
Mark-up / return / interest paid 292 7,496 108,007 31,505 150,743 1,844,455 297,705 - 4,846 - 20,556 477,113 1,787,633 1,683,174
Expenses paid to company in which Director
of the bank is interested as CEO - - - - - - 598,462 - - - - - 79,487
Remuneration to key management executives
including charge for defined benefit plan - 711,643 - - - - - - 713,790 - - - - -
Contribution for other corporate & social responsibility paid to

company inwhich Directors of the bank is interested as director
- - - - - - - - - - - - - 5,000
Directors fee & other allowances 88,232 - - - - - - 25,772 - - - - - -
Post Retirement Benefit paid to Director cum Ex-employee - - - - - - - - - - - - - 522
46.1 Transactions with Government-related entities
The Federal Government and Pakistan Sovereign Wealth Fund (PSWF) holds 75.60% (2022: Federal Government and SBP 75.60%) shares of the Bank and
therefore entities which are owned and / or controlled by the Federal Government, or where the Federal Government may exercise significant influence, are
related parties of the Group.
The Bank in the ordinary course of business enters into transaction with Government–related entities. Such transactions include lending to, deposits from and
provision of other banking service to Government–related entities.
The Bank also earned commission on handling treasury transactions on behalf of the Government of Pakistan amounting to Rs. 10,320 million (2022: 10,507
million) for the year ended December 31, 2023. As at the statement of financial position date the loans and advances, deposits and contingencies relating to
Government–related entities amounted to Rs. 602,707 million (2022: 593,486 million), Rs. 1,622,331 million (2022: 1,403,331 million) and Rs.1,780,517 million
(2022: 1,714,807 million) ,respectively and income earned on advances and investment and profit paid on deposits amounted to Rs. 77,719 million (2022: 40,225
million) and Rs. 184,042 million (2022: 199,052 million) respectively.
349
47. CAPITAL ADEQUACY, LEVERAGE RATIO & LIQUIDITY REQUIREMENTS
The Group's objectives when managing capital, which is a broader concept than the ‘equity' on the face of the
statement of financial position, are:
- to comply with the capital requirements set by the regulators of the banking markets where the Group
operates;
- to safeguard the Group's ability to continue as a going concern so that it can continue to provide returns for
shareholders and benefits for other stakeholders; and
- to maintain a strong capital base to support the development of its business.
The SBP has issued instructions for Basel-III Implementation vide BPRD Circular No. 06 of 2013 dated August
15, 2013. These instructions were effective from December 31, 2013 in a phased manner with full
implementation intended by December 31, 2019.
Basel-III instructions comprise the following three capital standards:
i. Minimum Capital Requirement (MCR):
The MCR standard sets the nominal amount of capital banks / DFIs are required to hold. Currently, the
MCR for banks and DFIs is Rs. 10 billion as prescribed by SBP.
ii. Capital Adequacy Ratio (CAR):
The Capital Adequacy Ratio (CAR) assesses the capital requirement based on the risks faced by the
banks/ DFIs. The banks/ DFIs are required to comply with the minimum requirements as specified by the
SBP on standalone as well as consolidated basis. Currently the required CAR for banks is 11.50% (plus
2.50% for NBP as D-SIB requirement).
iii. Leverage Ratio:
Tier-1 Leverage Ratio of 3% is introduced in response to Basel III Accord as the third capital standard.
Bank level disclosure of the leverage ratio and its components has started from December 31, 2015.
However, SBP vide its letter No. BPRD/BA&CPD/638/436708/2023 dated March 7, 2023 has reduced the
minimum requirement to 2.5% up till March 2024 which was 3% as per BPRD circular No.6 dated August
15, 2013. The bank has a leverage ratio of 3.23% in the year ended December 31, 2023, (2022: 3.15%)
and Tier-1 capital of Rs.290,194 Millions (2022: 236,742 million)."
The SBP's regulatory capital as managed by the Group is analysed into following tiers:
1. Tier 1 Capital (going-concern capital)
• Common Equity Tier 1
• Additional Tier 1
- Tier I capital, which comprises highest quality capital element and includes fully paid up capital,
balance in share premium account, reserve for issue of bonus shares, general reserves and un-
appropriated profits (net of accumulated losses, if any).
2. Tier 2 Capital (gone-concern capital)
- Tier II capital, which includes general reserve for loan losses, revaluation reserve, exchange translation
reserve and subordinated debt.
Basel III capital rules require bank to make certain deductions from the capital before arriving at the Capital
Adequacy Ratio (CAR).
Risk weighted assets are measured according to the nature of the asset and reflect an estimate of credit,
market and other risks associated with each asset and counterparty, after taking into account any eligible
collateral or guarantees. A similar treatment is adopted for off-balance sheet exposures, with some
adjustments to reflect more contingent nature of potential losses.

The Group's policy is to maintain strong capital base so as to maintain, investor, creditor and market confidence,
and to sustain future development of the business. The adequacy of the Bank's capital is monitored using,
among other measures, the rules and ratios established by the SBP. The ratios compare the amount of eligible
capital with the total of risk-weighted assets. The Bank monitors and reports its capital ratio under the SBP
rules, which ultimately determine the regulatory capital, required to be maintained by Banks and DFIs.
The paid-up capital of the Bank for the year ended December 31, 2023 stood at Rs. 21,275 billion (2022 : Rs.
21,275 billion) and is in compliance with the SBP requirement for the said period. In addition the Group has
maintained minimum Capital Adequacy Ratio (CAR) of 25.80% (2022: 22.02%)
There have been no material changes in the Group management of capital during the year.
2023 2022
--------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------
Minimum Capital Requirement (MCR):
Paid-up capital (net of losses) 21,275,131 21,275,131
Capital Adequacy Ratio (CAR):
Eligible Common Equity Tier 1 (CET 1) Capital 290,194,013 236,742,118

Total Eligible Tier 1 Capital 290,194,013 236,742,118
Eligible Tier 2 Capital 95,972,355 78,089,129
Total Eligible Capital (Tier 1 + Tier 2) 386,166,368 314,831,247
Risk Weighted Assets (RWAs):

Credit Risk 1,064,724,576 1,073,032,570
Market Risk 121,288,938 94,062,413
Operational Risk 310,495,520 262,697,854
Total 1,496,509,034 1,429,792,837

Leverage Ratio (LR):
Tier-1 Capital 290,194,013 236,742,118

Total Exposures 8,988,394,792 7,511,889,497
Leverage Ratio 3.23% 3.15%
Liquidity Coverage Ratio (LCR):
Total High Quality Liquid Assets 1,618,093,446 1,418,328,644

Total Net Cash Outflow 918,191,522 963,197,902
Liquidity Coverage Ratio 176% 147%
Net Stable Funding Ratio (NSFR):
Total Available Stable Funding 3,357,537,770 2,684,457,394

Total Required Stable Funding 1,298,306,326 1,069,401,835
Net Stable Funding Ratio 259% 251%

47.1 The full disclosure on the Capital Adequacy, Leverage Ratio and Liquidity Requirements as per SBP instructions
issued from time to time, is available on NBP's website. The link to the full disclosure is available at
https://www.nbp.com.pk/blsd/
48. RISK MANAGEMENT
Risk management is about understanding and managing the potential for volatility of earnings, loss of access to
reliable deposits and funding and depletion of capital arising from the business activities, whilst pursuing its
strategic objectives. The Group has in place a well-defined risk management strategy/ policy with clear
objectives and deliverables through multi-pronged risk management processes.
The Group applies the Basel framework as a cornerstone of the NBP’s risk management framework and capital
strategy. The Bank maintains a strong capital, funding and liquidity position in line with its on-going commitment
to maintain balance sheet strength. The strength of risk profile management of the Group stands at the following
pillars:
- Identification and assessment of significant material risks;
- Overseeing and managing the risk profile of the Bank within the context of the risk appetite;
- Optimize risk/ return decisions by aligning them to business objective of achieving sustainable optimum
growth.
In order to support Risk Management Group (RMG’s) activities, a strong data management mechanism is also
in place to collect and consolidate exposure wise information for various risk related analysis and reviews. The
mechanism also helps in identification of e-CIB related information, periodic reviews, generation of reports and
highlighting inconsistencies and errors, and issuing instructions to the relevant data entry points for rectification.
Group is cognizant of importance of Environmental & Social Risk Management (E&SRM). During the period
under review the Bank established a specialised ESG Function placed within the Enterprise Risk Management
Group (ERMG) to oversee Environment & Social Risks (E&S). Going forward, the E&S Wing manage bank’s
E&S risk in accordance with the regulatory requirements.
In addition, Information Security Division (ISD) became an integral part of Risk Management Group to
confronting the emerging risks arise due to the introduction and use of IT based systems.
48.1 Risk Governance Structure
Risk Management Group (RMG) operates as an independent group, i.e. separate from approvals and direct
involvement in day-to-day activities. RMG reports directly to the President with a dotted line reporting to the
Board Risk Committee (BRC). The group is responsible to perform the functions pertaining to development and
oversight of the risk framework, methodologies and other functions assigned from time to time in line with local/
international best practices and under the supervision of SBP’s regulations/ guidelines.
The Bank’s Board is responsible to ensure active oversight over implementation of policies and frameworks so
as to prevent any significant financial loss or reductions in shareholder value that may be suffered by the Bank.
Therefore, it is the responsibility of the Board to ensure that policies and frameworks are in place to recognize
all significant/ material risks to which the Bank is/ may be exposed and that the required human resource,
culture, practices and systems are adequate to address such risks. The Board and its relevant committee, i.e.
BRC and the senior management along with its relevant committees i.e. Credit Committee, Executive Risk
Management Committee (ERMC), ALCO etc. are responsible to ensure formulation and implementation of risk
management framework.

48.2 Risk Management Framework
The Group implements risk management framework through a ‘Three Lines of Defence’ model which defines
clear responsibilities and accountabilities for various offices and ensures effective & independent oversight and
also that the activities take place as intended. Risk Management Group together with Compliance Group acts
as second line of defense and performs integrated function of oversight and independently challenges the
effectiveness of risk management actions taken by business groups, who are the first line of defense. The risk
management is further strengthened by the third line of defense, where Board Audit & Compliance Committee
and Audit & Inspection Group add value through independent and objective assurance in improving risk
management functions of the Group.
Following paragraphs introduce Group’s exposures to material risks associated with its business activities and
explain overall strategies and processes to manage those risks:
48.2.1 Credit Risk
Credit risk is a significant concern for banks due to the inherent nature of their core operations. With the
continuous global economic crises, ongoing digitalization, and recent technological advancements, credit risk
management has gained increased attention. By adopting a proactive approach and effectively managing their
exposure to credit risk, banks not only ensure the sustainability and profitability of their own operations but also
contribute to the stability of the overall financial system and efficient allocation of capital. Credit risk refers to the
likelihood of incurring financial losses when a borrower fails to repay a loan, leading to disruptions in cash flow
and higher costs for debt collection. NBP's lending activities constitute a major source of credit risk for the Bank,
as it engages in various financial activities such as providing loans and advances, committing to lend, assuming
contingent liabilities such as letter of credit and guarantees, and engaging in other on and off-balance sheet
transactions. Under the supervision of the Board and the President, the Bank has a dedicated setup headed by
the Chief Risk Officer, who ensures the efficiency of credit risk assessment, measurement, review, and reporting
frameworks.
Smart lending decisions can empower people and businesses to boost the bank’s profitability and strategically
guarding against the risks of extending credit. The effective implementation of structured assessment models,
comprehensive pre-disbursement evaluation tools, and post-disbursement review systems has allowed NBP to
successfully manage credit risk and mitigate losses within acceptable tolerance levels. Our risk management
approach is rooted in a strategic goal to maintain a robust framework, proactively identify and address risks, and
facilitate sustainable business growth. The bank has in place a Risk Appetite Framework and a Credit Risk
Concentration Management Framework to set limits on credit risk exposure in relation to obligors, economic
groups, and industry segments.
Risk Management function consistently conducts ongoing assessments of the credit portfolio. This involves
utilizing portfolio reports and dashboards to discern borrowers and sectors that may be susceptible to the impact
of changes in the local and global business and economic environment. The bank is actively monitoring
delinquency in accounts, financial position of counterparties, prevailing economic situation and other pertinent
information. The bank's credit review mechanism and approval process are meticulously defined and overseen
by senior management. Analyzing counterparties across diverse asset classes, constitutions, and economic
groups involves employing well-established rating models and scorecards, thereby enhancing decision-making
processes.
The bank has actively undertaken the implementation of the IFRS 9 standard, presently in the parallel-run
phase. This standard introduces a novel model for financial assets, mandating the recognition of impairment
charges through the 'Expected Credit Loss' approach, departing from the existing 'Incurred Credit Loss'
approach.

Retail & Program Lending Group, manages the risk side of products governed on a program basis. It caters to
products covered under RBG, IDG and AIBG businesses. Group has been organized on a Credit Cycle
approach that adapts an end to end credit view. It is engaged in areas of Policy & Portfolio Management, MIS &
Analytics, Credit Approvals, Collection & Recovery, Quality Assurance, etc. In addition, it works closely with
other areas including Operational Risk, IT, Finance, HR, etc. Head of Group reports to CRO of the bank and is a
voting member of Management Credit Committee & Enterprise Risk Committee
Credit Administration (CAD) is pivotal in overseeing the post-approval credit procedures, besides encompasses
the establishment of fitting loan terms in accordance with sanctions and adherence to regulatory standards.
CAD assumes a crucial role in post-approval credit management, actively contributing to portfolio expansion
and granting individuals and businesses access to essential funds. Recent heightened managerial focus has
further refined the efficiency of credit administration functions, emphasizing diligent monitoring and risk
mitigation to sustain a robust and healthy portfolio.
Moreover, CAD is actively working to establish an improved mechanism encompassing advanced collateral
management functions, control over limit functions, and effective vendor management. This initiative aims to
address business requirements with a concentrated focus on CAD functions. Once the system is implemented,
it is anticipated to significantly bolster the Bank's position within its peer group, reinforcing its overall strength.
Presently, the Basel Standardized Approach is employed within the Basel Framework to compute the capital
charge for credit risk-weighted assets, utilizing a straightforward method for credit risk mitigation. Furthermore,
stress testing for credit risk is also conducted to assess the potential impacts of scenarios outlined by the
regulator.
Particulars of the Group's significant on-balance sheet and off-balance sheet credit risk in various sectors are
analysed as follows:
48.2.1.1 Lendings to financial institutions
Credit risk by public / private sector Gross lendings Non-performing lendings Provision held
2023 2022 2023 2022 2023 2022

----------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------------------------------------
Public/ Government 85,000,000 - - - - -
Private 107,604,587 31,446,617 174,150 174,150 174,150 174,150
192,604,587 31,446,617 174,150 174,150 174,150 174,150

48.2.1.2 Investment in debt securities
Credit risk by industry sector Gross investments Non-performing investments Provision held
2023 2022 2023 2022 2023 2022

------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------
Cement 245,168 357,668 20,168 20,168 20,168 20,168

Chemical 326,742 326,742 326,742 326,742 326,742 326,742
Construction 2,630,239 2,962,405 1,633,739 1,633,739 1,633,739 1,633,739
Engineering 4,842 4,842 4,842 4,842 4,842 4,842
Fertilizer 1,152,560 1,330,815 1,152,560 1,330,815 1,152,556 1,199,830
Sugar 640,719 655,219 640,719 655,219 640,719 655,219
Textile 725,810 936,767 582,953 651,053 582,953 651,053
Financial 15,119,874 14,920,842 501,012 501,012 501,012 501,012
Electronics and electrical appliances 1,308,738 1,308,738 1,308,738 1,308,738 1,308,738 1,308,738
Glass and Ceramics 11,361 11,361 11,361 11,361 11,361 11,361
Leather and Tanneries 5,288 5,288 5,288 5,288 5,288 5,288
Food and Personal Care Products 11,184 11,184 11,184 11,184 11,184 11,184
Pharmaceuticals 2,413 2,413 2,413 2,413 2,413 2,413
Technology and Communication 8,348 11,072 8,348 11,072 8,348 11,072
Vanaspati and Allied Industries 4,238 4,238 4,238 4,238 4,238 4,238
Oil and Gas Marketing 687 687 687 687 687 687
Cable and Electrical Goods 4,509 4,509 4,509 4,509 4,509 4,509
Automobile Parts and Accessories 1,185 1,185 1,185 1,185 1,185 1,185
Power (electricity), Gas, Water & Sanitary 29,940,857 27,714,075 - - - -
Tobacco 144 144 144 144 144 144
Paper and Board 10,794 10,794 10,794 10,794 10,794 10,794
Jute 7,081 7,081 7,080 7,081 7,084 7,080
Metal Products 590,000 375,000 - - - -
Services 780,516 823,877 - - - -
Telecom - 300,000 - - - -
Miscellaneous 23,605 464,627 23,447 23,447 23,447 23,448
53,556,902 52,551,574 6,262,151 6,525,731 6,262,151 6,394,746
Credit risk by public / private sector Gross investments Non-performing investments Provision held
2023 2022 2023 2022 2023 2022

------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------

Private 26,862,044 28,995,304 6,243,289 6,506,869 6,243,289 6,375,884
53,556,902 52,551,574 6,262,151 6,525,731 6,262,151 6,394,746

48.2.1.3 Advances
Credit risk by industry sector Gross advances Non-performing advances Provision held
2023 2022 2023 2022 2023 2022

------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------
Agriculture, Forestry, Hunting & Fishing 98,624,179 80,495,011 7,981,816 7,362,301 5,858,554 5,713,024
Mining & Quarrying 4,953,424 3,164,044 205,554 184,765 205,554 184,765
Textile 172,963,205 165,340,123 38,936,407 38,063,274 38,798,431 36,586,116
Chemical & Pharmaceuticals 8,726,797 7,461,927 5,693,439 4,439,102 5,057,930 4,394,734
Cement 29,429,909 35,175,010 6,286,205 5,768,647 4,306,468 3,786,389
Sugar 35,757,518 39,138,958 15,271,238 15,337,931 15,248,595 15,331,156
Footwear and Leather garments 2,548,291 2,534,796 1,305,280 1,168,627 1,271,149 1,079,224
Automobile & Transportation Equipment 8,926,304 10,875,288 962,288 921,095 954,395 905,813
Electronics & Electrical Appliances 10,503,866 10,782,697 4,778,714 2,379,854 3,688,323 2,377,270
Construction 23,638,052 24,955,900 10,057,457 9,447,671 9,936,191 9,441,049
Oil & Gas 311,928,714 178,706,498 19,934,588 19,619,278 19,481,124 19,339,190
Power (electricity), Gas, Water & Sanitary 191,933,546 194,522,795 14,882,572 15,156,096 12,709,678 12,981,169
Wholesale and Retail Trade 53,130,430 53,375,862 11,827,052 10,720,360 11,666,288 10,682,265
Transport, Storage and Communication 73,254,000 57,689,946 17,158,081 14,851,559 15,100,201 12,575,382
Financial 2,557,744 14,687,975 123,035 104,380 107,083 96,280
Services 48,600,716 42,121,726 2,406,149 3,219,193 1,584,931 1,826,174
Individuals 210,444,440 203,306,181 6,939,024 6,496,272 4,357,928 4,381,003
Flour Mills 4,463,504 2,552,518 609,624 725,603 609,461 676,963
Rice Trading & Processing 44,913,336 35,552,848 4,541,062 4,546,743 4,361,754 4,432,434
Food and Tobacco 22,581,792 20,562,295 9,386,521 7,134,439 7,973,281 6,767,830
Fertilizer 5,496,940 9,096,871 2,730,894 2,861,321 2,690,260 2,822,795
Metal Products 75,901,770 70,882,534 30,959,009 26,476,676 30,871,562 26,473,372
Telecommunication 32,954,455 30,839,889 1,312,494 1,180,028 1,104,242 1,180,028
Public Sector Commodity Operations 127,236,872 96,305,380 718,876 74,198 235,368 74,198
Engineering 8,845,740 29,549,358 1,508,928 1,637,447 1,370,855 1,482,884
Glass and Ceramics 7,089,518 6,626,264 271,493 274,739 271,493 274,739
Media 664,016 916,067 151,334 151,334 151,334 151,334
Paper & Board 3,954,072 3,063,869 590,686 1,177,882 570,300 1,168,683
Plastic products 3,865,916 3,305,648 1,735,045 1,507,205 1,396,225 1,157,387
Sports goods 1,457,410 140,062 34,794 14,688 34,794 14,688
Surgical equipments 981,604 790,887 13,159 13,200 13,159 9,430
Others 3,577,240 4,513,177 1,807,619 2,708,729 1,807,619 2,646,979
1,631,905,320 1,439,032,404 221,120,437 205,724,637 203,794,530 191,014,747
Credit risk by public / private sector Gross advances Non-performing advances Provision held
2023 2022 2023 2022 2023 2022

------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------

Private 987,027,247 940,099,837 220,137,937 205,624,750 203,295,538 191,914,860
1,631,905,320 1,439,032,404 221,120,437 205,724,637 203,794,530 192,014,747

2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
48.2.1.4 Contingencies and Commitments
Credit risk by industry sector
Agriculture, Forestry, Hunting and Fishing 218,136 504,418
Mining and Quarrying 73,466 426,948
Textile 15,709,777 15,852,803
Chemical and Pharmaceuticals 8,405,999 3,774,815
Cement 5,949,829 3,402,417
Sugar 5,303 93,200
Footwear and Leather garments 51,827 6,262
Automobile and Transportation Equipment 2,423,164 2,712,927
Electronics and Electrical Appliances 3,509,467 2,433,354
Construction 10,408,498 9,005,223
Oil & Gas 59,322,425 67,938,534
Power (electricity), Water & Sanitary 50,934,421 59,726,777
Wholesale and Retail Trade 3,105,839 1,507,306
Transport, Storage and Communication 55,560,127 117,805,517
Financial 856,711,238 836,176,841
Services 1,512,041,370 1,532,587,528
Individuals 228,227 316,559
Fertilizer 4,832,942 3,272,384
Metal Products 23,669,700 21,853,185
Telecommunication 32,082,348 25,204,570
Public Sector Commodity Operations 3,437,431 199,543
Rice processing and Trading 358,732 459,325
Food and Tobacco 2,082,149 460,902
Paper and Board 2,100,963 560,047
Engineering 81,202,951 68,544,006
Plastic Products 246,351 159,060
Sports Goods 6,229 26,713
Surgical equipments 86,235 47,143
Others 532,595 1,430,774
2,735,800,568 2,777,466,247
* Contingent liabilities for the purpose of this note are presented at cost and includes direct credit substitutes,
transaction related contingent liabilities and trade related contingent liabilities.
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
Credit risk by public / private sector

Public / Government 1,708,517,452 1,775,401,082
Private 1,027,283,116 1,002,065,165
2,735,800,568 2,777,466,247

48.2.1.5 Concentration of Advances
The Bank's top ten (10) exposures on the basis of total (funded and non-funded exposures) aggregated to Rs.
1,959,515 million (2022: Rs. 1,851,158 million) are as following:
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
Funded 441,093,207 306,636,922

Non Funded 1,518,421,637 1,544,521,600
Total Exposure 1,959,514,844 1,851,158,522
The sanctioned limits against these top 10 exposures aggregated to Rs. 2,045,103 million (2022: Rs. 1,899,110
million).
For the purpose of this note, exposure means outstanding funded facilities and utilised non-funded facilities as
at the reporting date.
48.2.1.6 Advances - Province / Region-wise Disbursement and Utilization
2023
Utilization
Province/Region Punjab Sindh Balochistan Islamabad
--------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------------------------
Punjab 488,630,825 487,273,108 111,328 1,246,389 - - -

Sindh 623,940,498 - 622,376,734 1,176,470 - 387,294 -
Balochistan 3,714,956 - - - 3,714,956 - -
Islamabad 118,306,922 - - - - 118,306,922 -
Total 1,249,178,108 487,273,108 622,488,062 13,244,672 3,714,956 118,694,216 3,763,094
2022
Utilization
Province/Region Punjab Sindh Balochistan Islamabad
--------------------------------------------------------------------------------------------------------(Rupees in '000)---------------------------------------------------------------------
Punjab 422,286,297 421,433,044 853,253 - - - -

Sindh 491,891,761 826,000 489,953,056 - 500,000 612,705 -
Balochistan 4,073,074 - - - 4,073,074 - -
Islamabad 129,737,810 - - - - 129,737,810 -
Total 1,066,693,366 422,259,044 490,806,309 11,459,625 4,573,074 130,350,515 7,244,799

48.2.2 Market Risk

Market Risk is the value of on and off-balance sheet positions of a financial institution that will be adversely
affected by movements in market factors such as interest rates, foreign exchange rates, equity prices, credit
spreads and / or commodity prices resulting in a loss to earnings and capital.
The Group's market risk is managed through Market & Liquidity Risk Management Policy and Manual approved
by the Board. Bank has in-place market risk limits to maintain risk emanating from such market drivers within
the Bank's risk appetite. Under the developed Value-at-Risk (VaR) models and policy framework, VaR limits are
being monitored.
Standardized Approach is used to calculate capital charge for market risk as per Basel framework. Stress
testing for interest rate, equity prices, and exchange rates risks activities is carried out regularly to estimate the
impact on the capital of the Bank and maintain the Bank's capital at an appropriate level.
In addition to the regulatory requirements, Bank has devised proprietary market risk stress testing scenarios
which are performed on periodic basis to assess the impact on capital of the Bank for Internal Capital Adequacy
and Assessment Process (ICAAP). Limits/ zones and Management Action Triggers and Management Action
Plans corresponding to Liquidity Ratios, Balance Sheet Duration Gap, Government Securities' PVBP and
Duration have also been developed.
48.2.2.1 Statement of Financial position split by trading and banking books
2023 2022
Banking book Trading book Total Banking book Trading book Total
-------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------------------------------------------------
Cash and balances with treasury banks 295,455,482 - 295,455,482 230,226,311 - 230,226,311
Balances with other banks 43,004,567 - 43,004,567 19,623,124 - 19,623,124
Lendings to financial institutions 192,430,437 - 192,430,437 31,272,467 - 31,272,467
Investments 4,367,407,940 46,766,365 4,414,174,305 3,396,969,183 85,966,664 3,482,935,847
Advances 1,398,072,669 - 1,398,072,669 1,230,669,118 - 1,230,669,118
Fixed assets 57,477,067 - 57,477,067 57,604,343 - 57,604,343
Intangible assets 2,186,294 - 2,186,294 2,101,322 - 2,101,322
Right of use assets 7,335,901 - 7,335,901 7,186,067 - 7,186,067
Deferred tax asset - - - 22,406,230 - 22,406,230
Other assets 258,737,303 - 258,737,303 167,741,065 - 167,741,065
6,622,107,660 46,766,365 6,668,874,025 5,165,799,230 85,966,664 5,251,765,894
48.2.2.2 Foreign Exchange Risk

Foreign exchange and translation risk arises from the impact of currency movements on the value of the Bank’s
cash flows, profits and losses, and assets and liabilities as a result of participation in global financial markets
and international operations.
In order to manage currency risk exposure the Bank enters into ready, spot, forward and swaps transactions
with the SBP and in the interbank market, financial institutions and corporates. The Group’s foreign exchange
exposure comprises of forward contracts, purchases of foreign bills, foreign currency cash in hand, balances
with Banks abroad, foreign placements with the SBP and foreign currency assets and liabilities. Foreign
Exchange exposure is managed within the statutory limits, as fixed by the SBP. Appropriate segregation of
duties exists between the front, middle and back office functions.
2023 2022
Foreign Foreign Net foreign Foreign Foreign Net foreign
Off-balance Off-balance
Currency Currency currency Currency Currency currency
sheet items sheet items
Assets Liabilities exposure Assets Liabilities exposure
-------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------------------------------------------------------------
United States Dollar 407,253,916 526,892,244 149,166,105 29,527,777 211,429,664 370,954,485 141,296,815 (18,228,007)
Great Britain Pound 4,563,184 8,045,545 8,217,517 4,735,156 3,736,408 7,473,268 5,377,060 1,640,200
Japanese Yen 5,270,740 1,265,119 2,990 4,008,611 4,521,164 1,566,256 109,675 3,064,583
Euro 11,886,019 14,678,082 5,639,911 2,847,848 11,899,656 22,030,243 14,029,417 3,898,830
Other currencies 125,917,928 63,654,039 6,779,686 69,043,576 85,538,450 17,315,572 5,066,952 73,289,829
554,891,788 614,535,029 169,806,209 110,162,967 317,125,342 419,339,824 165,879,919 63,665,435

2023 2022
Banking book Trading book Banking book Trading book
----------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------------------------------
Impact of 1% change in foreign exchange rates

- Other comprehensive income 1,101,630 - 636,654 -
48.2.2.3 Equity position Risk
Stock trading activities also raise risk which occurs resulting in negative fluctuations of daily stock prices
specifically in those stocks which are held by the Bank, hence, deplete capital. The Bank’s equity position is
managed through limits imposed by regulator for both, overall investment and exposure in single scrip.
Moreover, internal limits are set to possibly manage overall earnings in the form of placing of stop loss, VaR
limits and/ or through diversification within the structure of overall equity position portfolio.
2023 2022
----------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------------------------------
Impact of 5% change in equity prices

48.2.2.4 Yield / Interest Rate Risk in the Banking Book (IRRBB)-Basel II Specific
Interest rate risk specifically arises due to adverse movements in yield curve that is being monitored by ALCO
with an objective to possibly limiting the potential adverse impact on the profitability of the Group, which may
result due to volatility of market interest rates and any mismatch or gaps in the amount of financial assets and
financial liabilities in different maturity time bands. Bank assumes that the sources of IRR are based on following
sub-risks.
- Re-pricing risk; arising from changes to the overall level of interest rates and inherent mismatches in the re-
pricing term of banking book items.
- Yield curve risk; arising from a change in the relative level of interest rates for different tenors and changes
in the slope or shape of the yield curve.
- Basis risk; arising from differences between the actual and expected interest margins on Banking book
items over the implied cost of funds of those items.
2023 2022
----------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------------------------------
Impact of 1% change in interest rates on


48.2.2.5 Mismatch of Interest Rate Sensitive Assets and Liabilities
2023
Effective Total Exposed to Yield/ Interest risk Non-interest
Yield/ Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5 bearing
Interest Upto 1 to 3 to 6 Months to 1 to 2 to 3 to 5 to 10 Above financial
rate Month Months Months Year Years Years Years Years 10 Years instruments
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees
On-balance sheet financial instruments in '000)----------------------------------------------------------------------------------------------------------------------------------------------------------------
Assets
ANNUAL REPORT 2023

Lending to financial institutions 19.8% 192,430,437 192,420,714 - - - - - - - - 9,723
Investments 19.8% 4,414,174,305 1,217,495,026 1,016,852,727 406,102,259 1,046,953,641 125,302,736 219,655,801 161,244,939 97,933,065 4,827,262 117,806,849
Advances 15.3% 1,398,072,669 398,482,253 400,789,064 198,012,729 64,385,689 23,471,767 41,855,723 44,435,433 58,092,119 60,544,803 108,003,089
Other assets 0.0% 258,732,684 1,154,262 86,327 - 1,397,158 - - - - - 256,094,937

6,601,870,144 1,862,133,313 1,421,104,972 604,786,758 1,113,494,938 148,774,503 261,511,524 205,680,372 156,025,184 65,372,065 762,986,515
Liabilities
Bills payable 0.0% 68,000,448 - - - - - - - - - 68,000,448

Borrowings 20.7% 2,177,743,194 2,087,923,897 39,730,834 7,640,293 710,905 1,073,314 1,066,201 6,558,534 33,017,995 21,221 -
Deposits and other accounts 12.5% 3,673,109,914 1,754,993,189 164,721,333 205,025,317 211,301,760 20,390,959 8,319,597 16,710,676 2,777,796 - 1,288,869,287
Liabilities against assets subject to finance lease 25.5% 208,268 - - - 64,241 - 144,027 - - - -
Lease liability against right of use assets 9.9% 8,682,732 971 4,534 31,018 284,918 596,179 1,380,043 1,768,936 4,127,708 488,424 -
Other liabilities 0.0% 341,891,306 591,709 - - 1,417,279 - - - - - 339,882,318
6,269,635,862 3,843,509,766 204,456,701 212,696,628 213,779,103 22,060,452 10,909,868 25,038,146 39,923,499 509,645 1,696,752,053

- forward government securities transactions (4,332,657) - - - (658) - - (2,908,182) (1,423,817) - -
- Forward lending 44,432,555 - - - - - - - - - 44,432,555
- fixed assets 1,129,442 - - - - - - - - - 1,129,442
Other commitments - - - - - - - - - - -
Off-balance sheet gap 1,844,883,028 60,702,960 87,931,586 21,171,663 (658) - - (2,908,182) (1,423,817) - 1,679,409,476
Total Yield/Interest Risk Sensitivity Gap (1,920,673,493) 1,304,579,857 413,261,793 899,715,177 126,714,051 250,601,656 177,734,044 114,677,869 64,862,420 745,643,938
Cumulative Yield/Interest Risk Sensitivity Gap (1,920,673,493) (616,093,636) (202,831,843) 696,883,334 823,597,385 1,074,199,040 1,251,933,084 1,366,610,953 1,431,473,373 2,177,117,311
361
2022
362
Effective Total Exposed to Yield/ Interest risk Non-interest
Yield/ Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5 bearing
Interest Upto 1 to 3 to 6 Months to 1 to 2 to 3 to 5 to 10 Above financial
rate Month Months Months Year Years Years Years Years 10 Years instruments
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------------------------------------------------------------------------------------------
Assets
Lending to financial institutions 16.2% 31,272,467 31,262,744 - - - - - - - - 9,723
Investments 13.2% 3,482,935,847 623,770,208 1,495,119,190 545,060,870 201,640,994 121,415,872 114,581,645 175,991,374 115,774,778 7,150,694 82,430,222
Advances 10.4% 1,230,669,118 324,139,397 280,098,870 173,991,260 165,871,653 25,742,864 43,745,383 66,856,032 53,927,228 31,850,855 64,445,576
Other assets 0.0% 128,133,163 961,390 49,943 86,973 38,709 - - - - - 126,996,148
5,122,860,030 1,003,879,219 1,777,064,606 719,695,862 368,349,326 147,158,736 158,327,028 242,847,407 169,702,005 39,001,549 496,834,290
Liabilities
Bills payable 0.0% 55,268,019 - - - - - - - - - 55,268,019

Borrowings 15.8% 1,940,485,787 1,386,993,998 481,134,339 24,758,723 4,359,766 3,941,769 4,278,460 12,396,285 22,578,300 44,147 -
Deposits and other accounts 7.9% 2,665,273,257 1,692,284,015 56,331,627 143,645,001 62,752,364 87,857,931 21,560,944 14,583,213 1,997,543 - 584,260,619
Liabilities against assets subject to finance lease 16.1% 121,453 44,748 - - - - 76,705 - - - -
Lease liability against right of use assets 10.4% 8,761,015 50 21,308 60,618 295,566 416,971 1,376,016 1,921,963 2,978,296 1,690,227 -
Other liabilities 0.0% 267,719,271 992,453 - - - - - - - - 266,726,818
4,937,628,802 3,080,315,264 537,487,274 168,464,342 67,407,696 92,216,671 27,292,125 28,901,461 27,554,139 1,734,374 906,255,456

- forward government securities transactions (32,591,580) (32,591,580) - - - - - - - - -
- Forward lending 50,363,949 - - - - - - - - - 50,363,949
- fixed assets 798,234 - - - - - 798,234
NATIONAL BANK
Other commitments - - - - - - - - - - -
Off-balance sheet gap 1,881,086,247 46,122,032 62,008,252 25,158,054 - - - - - - 1,747,797,909
Total Yield / Interest Risk Sensitivity Gap (2,030,314,013) 1,301,585,584 576,389,575 300,941,630 54,942,065 131,034,903 213,945,945 142,147,867 37,267,175 1,338,376,744
Cumulative Yield / Interest Risk Sensitivity Gap (2,030,314,013) (728,728,429) (152,338,855) 148,602,776 203,544,841 334,579,744 548,525,689 690,673,556 727,940,731 2,066,317,474
PAKISTAN
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
48.2.2.6 Reconciliation of Financial Assets and
Liabilities with Total Assets and Liabilities
Total Financial Assets as per note 48.2.2.5 6,601,870,144 5,122,860,030

Add: Non-Financial Assets
Fixed assets 57,477,067 57,604,343
Intangible assets 2,186,294 2,101,322
Right of Use Assets 7,335,901 7,186,067
Deferred tax assets - 22,406,230
Other assets 4,619 39,607,902
67,003,881 128,905,864
Total assets as per statement of financial position 6,668,874,025 5,251,765,894
Total Financial Liabilities as per note 48.2.2.5 6,269,635,862 4,937,628,802
Add: Non-Financial Liabilities
Other liabilities 981,556 3,836,860
Deferred tax liabilities 842,568 -
Total liabilities as per statement of financial position 6,271,459,986 4,941,465,662
48.2.3 Operational Risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or
from external events. This definition includes legal risk but excludes strategic and reputational risks. For
effective implementation, Group has comprehensive Operational Risk Management (ORM) Framework and
procedure documents. These documents provide guidance for setting up operational risk strategy of the Bank,
selection and adoption of risk and loss measurement tools, reporting, and establishment of operational risk
management processes.
Operational risks are a core component of doing business arising from the day-to-day operational activities of
the Group including launching of new products and services by the group. Group realizes that operational risks
cannot be fully mitigated, it therefore, determines an appropriate balance between accepting potential losses
and incurring costs of mitigation.
Further, the Group has adopted an Operational Risk Management Policy Framework and Operational Risk
Appetite are approved by the Board in-line with Basel framework and Bank's policy, respectively. Furthermore,
Group has rolled-out Operational Loss Data Collection Mechanism whereby field functionaries and
Groups/Divisions at head office are responsible to report operational losses under their jurisdictions on
immediate basis. Operational loss events are reviewed and appropriate corrective measures are taken on an
ongoing basis. Risk Evaluation exercise is carried out for new products, processes and systems as per the
ORM procedures document of the Group.

The Group also conducts root cause analysis of major Operational Risk Incidents covering key control lapses
and accordingly suggests recommendations & mitigations. As per Basel regulatory framework, the Group
calculates capital charge for its operational risk using Basic Indicator Approach. This approach is considered
most suitable in view of the business model of the group which relies on an extensive network of branches to
offer banking services to its customers.
Moreover, the Group closely monitored overall bank's operational environment and undertook required actions
to ensure the safety and security of Bank staff, assets and maintenance of service to its customers. The Group
continued to take measures to ensure maintenance of their service levels and resolved customer complaints to
meet the expectations of its stakeholders.
The Group operations stayed highly resilient and the Group deployed all necessary measures for the health and
safety of its employees to prevent them from any unwarranted situation.
48.2.4 Information Security Risk
Cyber Security is one of our top priority risks. Considering extensive customer base and increasing digital
footprint, mechanism has been devised for up scaling of technology infrastructure and related channels from
information security standpoint. Further, due to evolving cyber threat landscape, the Group has taken
appropriate actions to monitor and respond to cybersecurity risks and adopted a heightened state of
cybersecurity. We are living in the highly technology dependent environment, where most of the business
functions are performed with information technology for storing, processing and sharing of information. The
information “assets” that are being used to store, process and transmit the information, face various types of
threats. If threats get materialized and are able to exploit the vulnerabilities (weaknesses) present in these
information assets, the confidentiality, integrity and availability of information get compromised. In order to
mitigate the risks, certain controls and countermeasures need to be assessed and implemented. The Group has
devised a governance mechanism to manage related risks through development of Policies & Frameworks, and
deployed security tools to ensure adequate implementation of internal controls and monitoring of security
threats within technology infrastructure.
As first line of defense, the Business groups have primary responsibility for identifying, measuring, and
controlling the risks within their areas of accountability. Our staff of Information Security Division (ISD) is second
line of defense against any cyber risks. Therefore, the Group regularly assesses the information security
controls and undertakes employees’ awareness and trainings. The Group works with its key technology partners
to ensure that potentially vulnerable systems are identified and appropriate fixes & controls are implemented to
secure the systems. The Group is actively communicating with its customers on interacting with the Group in a
secure manner through its full suite of channels including online and digital Grouping.
Over the span of last two years, the Group has taken various initiatives to uplift the cyber security controls. The
management is cognizant of the fact that cyber security is a top priority risk and the Group is taking appropriate
steps to monitor and respond to it. The Information Security Division (ISD) has been reorganized in 2022 with
introduction of new technical roles of IS Security Operations & Threat Management, Network & Infrastructure
Security, and Application & Database Security; in addition to the management roles of IS Governance &
Compliance, IS Program Management, and IS Risk Management. The unit (ISD) works under the supervision of
Chief Information Security Officer (CISO). Numerous steps have been taken by the Group to identify cyber
security weaknesses of systems & infrastructure. Several controls are in place including but not limited to 24/7
SOC, 2FA authentication of VPN connections, Kaspersky EPP and KATA XDR, IBM QRadar SIEM upgrade,
Guardium for Database security, Resilient for IR playbooks etc. in line with the action plan outlined in the
Group's cyber security management framework. In addition to these, numerous other initiatives and projects are
in line for further enhancement of Group's cyber security for years 2024 and 2025.

48.2.5 Enterprise-wide Risk
In addition to the above mentioned risks, the Group has a structure to identify other Pillar II material risks on
periodic basis. The source of these reports includes, but not limited to, the Internal Capital Adequacy and
Assessment Process (ICAAP), which takes into account risks over and above those which directly occur as a
result of daily business and operations of the Group. These risks include Concentration Risk, Interest Rate Risk
in Grouping Book (IRRBB), Increase in NPL Categories, Reputational Risk, Strategic Risk, etc.
Moreover, all those brewing risks that are material and arise within the Group or due to inherent behavior of
country’s market and economic conditions, whether in isolation or in combination are addressed under the
Group-wide Recovery Plan. These risks are monitored on certain frequency and mitigating actions are taken as
and when deemed necessary.
"Group's Stress-testing framework, comprises of tools, to deliver a timely assessment of the resilience of the
Group’s capital under stressed conditions to the senior management. It ranges from simple sensitivity analysis
to sophisticated stress testing methods to capture the abnormal movement of market and economic indicators
and to translate such scenarios into projections of Group’s profitability, liquidity and capital planning.
This framework paves the way to a quantitative, forward-looking assessment of capital adequacy (movement/
level of Capital Adequacy Ratio (CAR) of the Group) to provide an indication of how much capital might be
needed to absorb any expected and any unforeseen losses. It helps in identifying potential vulnerabilities within
the Group and assessing solvency by applying plausible/ past adverse scenarios under extreme conditions."
48.2.6 Liquidity Risk
Liquidity risk is the risk of loss to a Group arising from its inability to meet obligations as they fall due or to fund
assets, without incurring unacceptable costs or losses. More simply, liquidity risk is the possibility that a Group
will be unable to meet its financial commitment to a customer, creditor, or investor when due, in a timely and
cost-effective manner.
To mitigate this risk, Group has arranged diversified funding sources, manages specific assets with liquidity in
mind and monitors liquidity on daily basis. In addition, the Group maintains statutory deposits with central
Groups inside and outside Pakistan. The purpose of liquidity management is to ensure that there are sufficient
cash flows to meet all of the Group's liabilities when due, under both normal and stressed conditions without
incurring unacceptable losses, as well as to capitalize on opportunities for business expansion and profitability.
This includes the Group's ability to meet deposit withdrawals either on demand or at contractual maturity, to
repay borrowings as they mature and to make new loans and investments, as opportunities arise.
Asset and Liability Committee (ALCO) is responsible for ensuring that the Group has adequate liquidity and
monitors liquidity gaps, to execute this responsibility. Mandatory as well as optional stress testing and ratio
based liquidity assessments are performed to proactively identify and manage liquidity position & needs/
requirements. Group has various limits/ ratios, triggers and management actions in place to monitor and
mitigate liquidity risk. The Group calculates and monitors, on regular basis, Basel-III Liquidity standards
(includes LCR, NSFR and LMTs), liquidity ratios as per SBP parameters besides other internal liquidity
measures.

48.2.6.1 Maturities of Assets and Liabilities - based on contractual maturity of the assets and liabilities of the Group
366
2023
Total Upto 1 Day Over 1 to 7 Over 7 to 14 Over 14 days Over 1 to 2 Over 2 to 3 Over 3 to 6 Over 6 to 9 Over 9 Over 1 to 2 Over 2 to 3 Over 3 to 5 Over 5
days days to 1 month months months months months months to 1 years years years years
year
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Assets
Cash and balances with treasury banks 295,455,482 292,116,487 931,850 - 2,405,140 2,005 - - - - - - - -
Balances with other banks 43,004,567 33,574,696 121,714 188,428 3,937,730 3,751,779 - 671,770 758,450 - - - - -
Lendings to financial institutions 192,430,437 9,723 192,420,714 - - - - - - - - - - -
Investments 4,414,174,305 6,645,274 63,237 4,470,333 491,810 642,639 43,725,986 46,393,901 575,275,570 1,009,545,853 1,304,643,492 489,385,140 649,752,188 283,138,882
Advances 1,398,072,669 308,463,728 12,814,449 29,826,563 81,107,496 104,805,117 56,183,865 127,960,502 57,342,172 41,318,720 74,813,740 65,861,729 153,261,454 284,313,134
Fixed assets 57,477,067 - - - 33,181 - 29,358 - - 764,175 2,332,578 709,154 1,574,446 52,034,175
Intangible assets 2,186,294 - - - - 4,530 - - - 531,972 521,472 558,051 7,717 562,552
Right of use assets 7,335,901 - - - 274 1,017 2,112 26,771 67,685 191,032 502,464 1,042,021 1,591,972 3,910,553
Deferred tax assets - - - - - - - - - - - - - -
Other assets 258,737,303 76,635,621 569,457 9,337 (17,274) 54,619,154 53,434,573 33,961,677 6,476,723 6,476,723 22,596,844 757,405 1,136,107 2,080,956
6,668,874,025 717,445,529 206,921,421 34,494,661 87,958,357 163,826,241 153,375,894 209,014,621 639,920,600 1,058,828,475 1,405,410,590 558,313,500 807,323,884 626,040,252
Liabilities
Bills payable 68,000,448 68,000,448 - - - - - - - - - - - -
Borrowings 2,177,743,194 19,330,975 515,918,633 688,152,390 864,421,899 9,640,838 30,189,996 7,640,293 620,036 90,869 1,073,314 1,066,201 6,558,534 33,039,216
Liabilities against assets subject to
finance lease 208,268 - - - - - - - - 64,241 - 144,027 - -
Lease liability against right of use assets 8,682,732 610 - - 363 1,697 2,837 31,018 76,618 200,709 660,880 1,332,356 1,759,513 4,616,131
Deferred tax liabilities 842,568 - 558 - - - - - - 121,827 - - 720,183 -
Other liabilities 342,872,862 204,685,508 1,911,066 1,141,953 1,046,977 6,560,557 6,149,853 36,083,856 3,771,941 2,431,529 26,230,647 10,936,240 21,215,571 20,707,164
6,271,459,986 3,212,438,058 552,539,772 706,012,172 939,559,609 109,884,891 106,490,815 251,644,919 157,920,630 56,707,954 48,354,108 21,802,273 46,964,477 61,140,308
Net assets 397,414,039 (2,494,992,529) (345,618,351) (671,517,511) (851,601,252) 53,941,350 46,885,079 (42,630,298) 481,999,970 1,002,120,521 1,357,056,482 536,511,227 760,359,407 564,899,944

Reserves 85,078,819
NATIONAL BANK
Non-controlling interest 1,134,234
397,414,039
PAKISTAN
2022
Total Upto 1 Day Over 1 to 7 Over 7 to 14 Over 14 days Over 1 to 2 Over 2 to 3 Over 3 to 6 Over 6 to 9 Over 9 Over 1 to 2 Over 2 to 3 Over 3 to 5 Over 5 years
days days to 1 month months months months months months to 1 years years years
year
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Assets
Balances with other banks 19,623,124 12,945,156 2,338,977 53,880 1,133,563 666,168 1,130,647 556,760 797,973 - - - - -
Lendings to financial institutions 31,272,467 9,723 30,484,537 778,207 - - - - - - - - - -
Investments 3,482,935,847 8,049,772 3,022,008 2,096,958 3,740,930 186,920,863 406,585,250 221,875,848 398,517,150 178,815,656 599,374,146 756,921,831 458,210,559 258,804,877
Advances 1,230,669,118 395,431,130 4,048,283 13,107,471 41,983,638 66,324,712 19,836,459 117,851,616 67,043,260 61,485,353 70,627,513 64,102,093 125,183,386 183,644,203
Fixed assets 57,604,343 530 - - 23,048 9,879 57,363 - - 852,511 1,847,737 767,649 1,585,175 52,460,450
Intangible assets 2,101,322 - - - - - 6,000 - - 486,981 463,480 535,691 46,617 562,553
ANNUAL REPORT 2023

Right of use assets 7,186,067 - - - 112,827 16,055 611 343,735 104,470 74,850 447,738 851,025 1,550,294 3,684,462
Deferred tax assets 22,406,230 - - - - - - - - 105,876 947 - 22,299,407 -
Other assets 167,741,065 40,563,375 916,586 - 880,374 35,063,581 35,453,086 18,016,853 1,566,970 1,555,780 30,154,790 688,171 1,032,256 1,849,243
5,251,765,894 684,944,761 41,708,403 16,036,516 49,257,604 289,001,258 463,069,417 358,644,812 468,029,823 243,377,007 702,916,351 823,866,460 609,907,694 501,005,788
Liabilities
Bills payable 55,268,019 55,268,019 - - - - - - - - - - - -
Borrowings 1,940,485,787 181,510 904,800,208 6,202,665 475,809,616 332,601,654 148,532,685 24,758,723 2,260,017 2,099,748 3,941,769 4,278,460 12,396,285 22,622,446
Liabilities against assets subject to
finance lease 121,453 - - - 44,748 - 76,705 - - - - - - -
Lease liability against right of use assets 8,761,015 - - - 109,248 20,865 276,495 60,618 70,232 109,374 506,865 1,034,754 1,904,041 4,668,524
Other liabilities 271,556,131 141,952,441 967,767 10,535 748,017 11,484,263 11,395,636 28,281,345 2,106,131 2,165,097 24,159,069 9,893,832 19,220,510 19,171,488
4,941,465,662 2,340,392,329 934,948,982 21,317,934 566,144,039 379,288,573 181,242,382 196,707,646 47,552,435 24,068,671 116,464,176 36,774,446 48,104,050 48,460,000
Net assets 310,300,232 (1,655,447,568) (893,240,579) (5,281,418) (516,886,435) (90,287,315) 281,827,035 161,937,166 420,477,388 219,308,336 586,452,175 787,092,014 561,803,645 452,545,788

Reserves 67,488,847
Surplus/(Deficit) on revaluation of assets 42,273,537
310,300,232
367
48.2.6.2 Maturities of assets and liabilities - based on expected maturities of the assets and liabilities of the Group
368
2023
Total Upto 1 Month Over 1 to 3 Over 3 to 6 Over 6 months Over 1 to 2 Over 2 to 3 Over 3 to 5 Over 5 to 10 Above 10
months months to 1 year years years years years years
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------------------------------------------------
Assets
Cash and balances with treasury banks 295,455,482 187,160,382 4,459,436 51,917,832 51,917,832 - - - - -
Lendings to financial institutions 192,430,437 192,430,437 - - - - - - - -
Investments 4,414,174,305 12,650,748 37,116,409 46,232,793 1,585,589,361 1,304,643,492 495,657,264 649,752,188 273,727,499 8,804,551
Advances 1,398,072,669 353,290,345 257,892,715 117,908,126 90,732,536 74,812,630 65,861,729 153,261,454 208,090,803 76,222,331
Fixed assets 57,477,067 - 62,533 - 764,175 2,332,578 762,583 1,521,025 52,715 51,981,458
Intangible assets 2,186,294 - 4,530 - 531,972 521,472 559,353 6,416 562,551 -
Right of use assets
7,335,901 277 3,128 26,771 258,717 502,464 1,042,021 1,591,971 3,475,902 434,650
Deferred tax assets - - - - - - - - - -
Other assets 258,737,303 173,404,114 23,399,862 20,930,958 14,997,217 22,596,844 757,405 1,136,094 1,514,809 -
6,668,874,025 957,133,796 326,315,467 237,688,250 1,745,550,260 1,405,409,480 564,640,355 807,269,148 487,424,279 137,442,990
Liabilities
Bills payable 68,000,448 43,326,759 644,310 8,009,793 8,009,793 8,009,793 - - - -
Borrowings 2,177,743,194 2,087,823,897 39,830,834 7,640,293 710,905 1,073,314 1,066,201 6,558,534 33,017,995 21,221
Liabilities against assets subject to finance lease 208,268 - - - 64,241 - 144,027 - - -
Lease liability against right of use assets 8,682,732 972 4,534 31,018 277,327 660,880 1,332,356 1,759,513 4,127,708 488,424
Deferred tax liabilities 842,568 - - - 122,386 - - 720,182 - -
6,271,459,986 3,061,073,130 291,835,770 700,773,890 670,850,596 509,915,781 475,354,154 500,516,356 50,277,082 10,863,227
Net assets 397,414,039 (2,103,939,334) 34,479,697 (463,085,640) 1,074,699,664 895,493,699 89,286,201 306,752,792 437,147,197 126,579,763

Reserves 85,078,819
397,414,039
NATIONAL BANK
PAKISTAN
2022
Total Upto 1 Month Over 1 to 3 Over 3 to 6 Over 6 months Over 1 to 2 Over 2 to 3 Over 3 to 5 Over 5 to 10 Above 10
months months to 1 year years years years years years
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------------------------------------------------
Assets
Cash and balances with treasury banks 230,226,311 151,728,041 3,232,446 36,991,996 36,991,996 1,281,832 - - - -
Lendings to financial institutions 31,272,467 31,272,467 - - - - - - - -
Investments 3,482,935,847 28,354,943 646,432,512 220,062,209 577,292,511 593,544,606 741,081,570 419,894,119 245,443,901 10,829,476
Advances 1,230,669,118 385,942,104 171,508,519 110,076,664 119,557,100 70,639,884 64,117,258 125,183,386 119,244,206 64,399,997
Fixed assets 57,604,343 530 120,291 - 852,504 1,847,745 804,023 1,518,801 43,365 52,417,084
Intangible assets 2,101,322 - 4,530 - 481,101 462,982 518,547 71,609 562,553 -
ANNUAL REPORT 2023

Right of use assets 7,186,067 112,827 16,666 343,735 179,321 447,737 851,025 1,550,294 2,488,455 1,196,007
Deferred tax assets 22,406,230 - - - 105,873 947 - 22,299,410 - -
Other assets 167,741,065 93,890,423 25,970,589 11,036,642 3,146,181 30,154,790 688,171 1,032,243 1,822,026 -
5,251,765,894 707,956,670 848,898,612 379,068,006 739,404,557 698,380,522 808,060,594 571,549,862 369,604,506 128,842,564
Liabilities
Bills payable 55,268,019 29,855,579 1,335,761 863,023 11,606,828 11,606,828 - - - -
Borrowings 1,940,485,787 1,386,993,999 481,134,339 24,758,723 4,359,766 3,941,769 4,278,460 12,396,285 22,578,300 44,147
Liabilities against assets subject to finance lease 121,453 - - - 44,748 - 76,705 - - -
Lease liability against right of use assets 8,761,015 50 21,308 60,618 288,804 506,865 1,310,806 1,904,041 2,978,296 1,690,227
4,941,465,662 1,974,260,582 644,712,202 214,966,425 520,039,073 569,979,379 479,035,577 490,012,424 36,955,068 11,504,932
Net assets 310,300,232 (1,266,303,912) 204,186,410 164,101,581 219,365,484 128,401,143 329,025,016 81,537,438 332,649,439 117,337,631

Reserves 67,488,847
310,300,232
369
48.2.7 Derivative Risk
A derivative is a contract that derives its value from the performance of an underlying asset which can be an
index, interest rate, commodity price, security price, FX rate etc. Derivatives include forwards, futures, swaps,
options etc. In Pakistan, futures and forwards are most commonly traded derivatives.
Currently, the Bank is not an active participant in the Pakistan derivatives market as it does not hold an
Authorized Derivative Dealer (ADD) license to perform derivative transactions. Once acquired, the Bank will
carry out transactions that are permitted under the Financial Derivatives Business Regulations issued by SBP,
which may include Interest rate swaps, forward rate agreements, foreign currency options, etc.
Moreover, the Bank may also offer other over the counter derivative products to satisfy customer requirements,
specific approval of which will be sought from the SBP on a transaction by transaction basis.
49. GENERAL
49.1 Comparative information has been re-classified, re-arranged or additionally incorporated in these consolidated
financial statements, wherever necessary, to facilitate comparison and better presentation. No significant
reclassifications have been made during the current year.
49.2 Figures have been rounded off to the nearest thousand rupees.
50 DATE OF AUTHORISATION FOR ISSUE
These consolidated financial statements were authorised for issue on Februrary 22, 2024 by the Board of
Directors of the Bank.

Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31, 2023
Rs. In 000
mark-up
1 2 3 4 5 6 7 8 9 10 11 12
1 Harum Textile Mills Ltd. Ch.Naeem Gulzar Gulzar Muhammad 295,572 44,776 285,583 625,931 - - 285,531 285,531
98 B, New Muslim Town, Lahore 35202-3020481-3
Ch.Mazhar Shakeel Bhatti Anayatullah Bhatti
34603-6324577-9
Mrs.Shakeela Naeem Naeem Gulzar
35202-3263963-8
Mr.Gul Riaz Bhatti Anayatullah Bhatti
ANNUAL REPORT 2023

34603-3801110-1
Mrs.Rehana Abbas Ghulam Abbas
35202-2463452-8
Mrs.Seerat Zainat Bhatti Mushtaq Haq Nawaz
34603-5410998-9
Mr.Waheed Akhtar Muhammad Iqbal Tahir
34501-2837420-9
2 Adil Textile Mills Ltd. Adil Mehmood Mehmood Saqiq 147,301 52,845 - 200,146 - - 16,936 16,936
156 N, Model Town 35202-2700320-3
Lahore
Nusrat Azhar M. Mustafa
35202-5065994-6
Zulfiqar Haider Allah Ditta

Consolidated Financial Statements
35404-1585958-7
Saqib Maqsood Maqsood Ahmad

35200-1497387-5
Shahid Qureshi Ghulam Muhammad

35200-1504083-7 Qureshi
3 Eden Housing Ltd. Muhammad Amjad Ch.Ghulam Hussain 352,393 160,634 152,596 665,623 - - 86,800 86,800
Eden Tower 35202-7697311-7
M 3, 82 -E/1
Main Boulevard Gulberg III Anjum Amjad Muhammad Amjad
Lahore 35202-2228505-4
Syed Mussarat Hussain Syed Najam ul Hassan

Naqvi Naqvi
35202-5668485-1
4 M/s. Tharparkar Sugar Mills Limited (TSML) Syed Imtiaz Ali Shah Ghulam Haider Shah 225,538 91,461 - 316,999 - - 91,461 91,461
44103-2975179-7
Syed Irfan Ali Shah Ghulam Haider Shah

44103-4745570-5
Syed Irshad Ali Shah Mohammad Ali Shah

42501-5421979-9
371
Rs. In 000
372
mark-up
5 Master Rice Mill, Kheeal Mal Warsi Mal 47,170 2,411 36,777 86,358 - - 23,453 23,453
Near Ansar Sugar Mill, 41207-1069423-9
Moya Road Matli
Leela Ram Warsi Mal
41207-2433189-9
6 M/s Clifton Industry Hafiz Bilal tahir Tahir Mahmood 8,918 - 1,855 10,773 - - 573 573
Shatab Ghara near Railway Crossing , Sialkot 34603-2111701-1
Hassan Tahir
34603-7087782-1
7 Mycal Mycal Sharif Masih 550 - 1 551 550 - 1 551

Kosoky Road,Mohallah West, 34301-3642376-3
Christian Colony, Hafizabad
8 Mushtaq Ahmad S/o Nawazish Ali Mushtaq Ahmad Nawazish Ali 701 - 65 766 701 - 65 766
H.No.786, Ward # 8/17, Old Nankana Sahib, Distt: 35402-1931411-7
Nankana Sahib
9 M/s.Jawad and Co Syed Hassan Raza Syed Anwaar Hussain 2,425 3,614 350 6,389 - - 857 857
Ghalla Mandi Gharbi, 34301-7868277-9 Sherazi
Hafizabad
Syed Shabbir Hussain Shah Bahawal Sher
34302-7851864-9
10 Khushal Khan Khushal Khan Muhammad Sharif 561 - - 561 561 - - 561
Goharabad PO Hattain Bala, Tehsil & Distt: 61101-1918367-1
Hattain Bala, AJK
11 Ziauddin S/o Hakim Din Ziauddin Hakim Din 507 - - 507 507 - - 507
Harayyla Gujran PO Ghari Dopatta, 82203-6730841-1
Muzaffarabad AJK
12 Raja Farooque Asghar Raja Farooque Asghar Raja Muhammed Asghar 1,060 - 13 1,073 1,060 - 13 1,073
Ward No. 03, Mohallah Sundgali, Muzaffarabad. 82203-9900372-5
13 Javeed Ahmed Javeed Ahmed Muhammad Alam Khokhar 964 - - 964 964 - - 964
Muhallah Bais Colon, Larkana 43202-0825825-9
14 Nagar Ali Nagar Ali Allah Rakhio Mangnejo 587 - - 587 587 - - 587
Village Wandh Saboo, Kartio Taluka Ratdero, 43205-7523677-1
Distt: Larkana
15 Ghulam Hussain Ghulam Hussain Muhammad Siddique Bhutto 641 - - 641 641 - - 641
Muhallah Hassan Pur Taluka Ratodero, 43205-4716171-7
Distt: Larkana
16 Sharafuddin Jatoi Sharafuddin Jatoi Abdul Qadir Jatoi 968 - - 968 968 - - 968
Airport Road Muhalla Allahabad, 43203-4239556-5
Distt: Larkana
17 Ghulam Ali Ghulam Ali Abdul Rahim Channo 748 - - 748 748 - - 748
Village Baradi Sario, PO Bagi, Distt: Larkana 43201-3788893-1
18 Syed Fazal Shah Syed Fazal Shah Syed Muhammad Ismail 1,029 - - 1,029 1,029 - - 1,029
Madrsa Mohalla Khandhkot Taluka Kandhkot Distt 43103-3985114-5 Shah
NATIONAL BANK
Kashmotre
19 Late Abdul Rasheed Late Abdul Rasheed Khan Muhammad 813 - - 813 813 - - 813
Bhatti Muhalla, Old Saddar, Tehsil Garhi Yasin Distt: 43304-7949750-9
Shikarpur
20 Muhammad Adam Muhammad Adam Muhammad Khan Babar 762 - - 762 762 - - 762
New Colony Ward No.01, Taluka Johi 41202-2400875-3
21 Nazir Hussain Nazir Hussain Gul Muhammad Soomro 567 - - 567 567 - - 567
Wadi Wahni, P.O Dokri Khairwah, Taluka Dokri 43201-3205633-7
PAKISTAN
Rs. In 000
mark-up
22 Munawar Ali Munawar Ali Sijawal Khan Joyo 501 - - 501 501 - - 501
Muhalla Noorani Badah, Taluka & Distt: Larkana 43201-5820272-3
23 Late Muhammad Ali Late Muhammad Ali Amir Bux 618 - - 618 618 - - 618
Village Bukhshoo Madeji, Tal: Garhi Yasin 43301-8249271-3
24 Irshad Ahmed Irshad Ahmed Muhammad Hassan Dayo 903 - - 903 903 - - 903
Muhalla New Nazar City, Distt: Larkana 43203-1357034-5
25 Mubarak Ali Mubarak Ali Makan Khan Bugti 1,004 - - 1,004 1,004 - - 1,004
Muhallah Ruhal Khan Bugti, Village Metho Dero 43203-2836628-5
26 Amir Bux Amir Bux Hussain Bux 867 - - 867 867 - - 867
Haji Latif Shah Sindh Wah Road, Shikarpur 43304-9699653-3
27 Late Abdul Hameed Late Abdul Hameed Fateh Ali Hajano 568 - - 568 568 - - 568
Village Hajana, Distt: Shikarpur 43304-0595038-1
ANNUAL REPORT 2023

28 Nazakat Ali Nazakat Ali Faqir Muhammad Khaskheli 852 - - 852 852 - - 852
RO Rangar Muhalla Radhan Station Taluka Mehar 41205-6653333-5
29 QudratUllah QudratUllah Abdul Kareem 611 - - 611 611 - - 611
Village Haji Abdul Karim Jagirani 43103-5595015-9
30 Ghulam Akbar Ghulam Akbar Khawand Dino 959 - - 959 959 - - 959
Street sanch PO Ratodero Taluka Ratodero Distt 43205-8762110-1
Larkana
31 Bhag Chand Bhag Chand Heera Nand 695 - - 695 695 - - 695
Muhalla Maaraj Ramchand Haveli PO ratodero Distt 43205-3665745-9
Larkana
32 Qurban Ali Qurban Ali Muhammed Ishaque Soomro 517 - - 517 517 - - 517
Village Karani talka Dokri 43201-7182377-1
33 Ali Hyder Ali Hyder Muhammed Khan 732 - - 732 732 - - 732
Shaikh Muhalla, Nasirabad 43207-6130872-5
34 Ghulam Sarwar Ghulam Sarwar Piyaro 740 - - 740 740 - - 740
Bus Stand Muhalla, Lakhi 43303-9814115-7
35 Ghulam Rasool Ghulam Rasool Punhoo Khan 636 - - 636 636 - - 636
Village Haji Dhani Bux, Mashori, P.O. Noushoro Feroz 45304-8942645-9
36 Ali Asghar Utho Ali Asghar Utho Muhammad Umar 572 - - 572 572 - - 572
Village Muhammad Khan Utho Taluka Qazi Ahmed 45402-0926307-5
Distt: Shaheed Benazir Abad
37 Muhammad Umer Muhammad Umer AllaUddin 514 - - 514 514 - - 514
H.NO 27-28 Mohalla Fateh Town, Eid Gah Road, 44103-4920760-3
Mirpurkhas
38 Musheer Ahmad Musheer Ahmad Wali Dad 523 - - 523 523 - - 523
Kikri, PO Bahadurpur, Tehsil Sadiqabad, 31304-0683164-7
Distt: Rahimyar Khan
39 Rafaqat Masih S/o Saeed Masih Rafaqat Masih Saeed Masih 504 - - 504 504 - - 504
Street # 3, Abu Al Hasan Colony, 31303-7078874-9
Rahim Yar Khan
40 Shabbir Ahmad Nadeem Shabbir Ahmad Nadeem Fakhar Uddin 562 - 2 564 562 - 2 564
Taj Garh,Tehsil & Disst Rahimyarkhan 31303-2370563-3
41 Muhammad Abdul Mujtaba Muhammad Abdul Mujtaba Muhammed Abdullah 1,032 - - 1,032 1,032 - - 1,032
H. No. 03, Muhalla Pir Manan, Uchsharif. District 31201-0313186-7
Bahawalpur.
42 Muhammad Tariq Muhammad Tariq Nabi Bakhsh 587 - - 587 587 - - 587
H#533/D Mohalla Munshian Bannu 11101-0631524-1
43 Said Nawaz Khan Said Nawaz Khan Sher Daraz Khan 599 - - 599 599 - - 599
Akhundan Landidak, P.O Miryan, Bannu 11101-5954241-3
44 Nasir Mehmood Nasir Mehmood Ameer Din 820 - - 820 820 - - 820
Mangoke P/o Same Tehsil Nowshera Virkan District 34103-4394533-1
373
Gujranwala
Rs. In 000
374
mark-up
45 Muhammad Akram Muhammad Akram Ali Hassan 962 - - 962 962 - - 962
St: 06 Barkat Colony PO Climax Gujranwala 34101-9711636-5
46 Rashid Ali Aziz Rashid Ali Aziz Abdul Aziz 651 - - 651 651 - - 651
Near Railway Colony, Piran Ghaib, P/O Wapda Colony, 36302-0401118-9
Multan
47 Haq Nawaz Haq Nawaz Muhammed Bux 586 - - 586 586 - - 586
Chak KikarWala, PO Khas, Jhok Vaince, Multan 36302-3736785-5
48 Niaz Hussain Niaz Hussain Manzoor Hussain Bhatti 657 - - 657 657 - - 657
H. NO 889/10 Mohalla Tibi Sher Khan,Multan 36302-0418840-1
49 M/S Sahiwal Trading Coporatrion Muhammad Zahid Iqbal Muhammad Ali 389 2,148 180 2,717 - - 817 817
Citizen Market Chowk Dera Adda Multan (Deceased),
36302-4255478-1
50 Liaqat Ali Liaqat Ali Muhammad Manzoor 528 - - 528 528 - - 528
51 Muhammad Jahangir Muhammad Jahangir Muhammad Boota 833 - - 833 833 - - 833
52 Atta Ullah Shah Atta Ullah Shah Ahmed Shah 545 - - 545 545 - - 545
Resident of Muhallah Saidan Tindo Dag Dist Swat 15602-0464193-5
53 Aslam Zeb Aslam Zeb Mian Gul 532 - - 532 532 - - 532
Resident of Bara Drushkhela Dist Swat 15601-0131249-5
54 Muhammad Hussain Muhammad Hussain Alamgir 517 - - 517 517 - - 517
Resident of Muhallah Chitor Saidu Sharif Dist Swat 156023911465-3
55 Fazal Illahi Fazal Illahi Ghawali 938 - - 938 938 - - 938
Kamragara, NaviKali, PO Sarian Bala Dir L 15302-5913190-1
56 Ijaz Hussain Tahir Ijaz Hussain Tahir Ahmad Yar 926 - - 926 926 - - 926
Chak Malka Wala, PO Qadirabad Karimwah, Vehari. 36603-2788639-5
57 Muhammad Arshad Munir Muhammad Arshad Munir Muhammad Munir 11,920 4,988 88 16,996 - - 501 501
Gulgust Colony, Multan 36502-3768116-7
58 Arshad Masih Arshad Masih Munshi Masih 572 - - 572 572 - - 572
Mohallah Rasoolpura, Mailsi 36602-6831987-9

59 Zaheer Ahmed Zaheer Ahmed Muhammed Dawood 661 - - 661 661 - - 661
Village Shahmeer Rahoo, Talka Saeed Abad, District 41301-6676925-3
Matiari.
60 Muhammad Jamil Muhammad Jamil Muhammad Habb 658 - - 658 658 - - 658
Block 5-A, PWD, H. No. 15, Street No. 17, Sector G-9, 61101-4573281-3
Islamabad
61 Mir Muhammed Mir Muhammed Ghulam Hyder 760 - - 760 760 - - 760
42201-8952626-7
62 Ghulam Murtaza Ghulam Murtaza Muhammed Boota 610 - - 610 610 - - 610
H. No.12, Street No. 49-A, Ittehad Colony, Tajpura 35201-5875266-1
Road, Ghaziabad, Lahore.
63 Raqeef Khan Raqeef Khan Abdul Rasheed 676 - - 676 676 - - 676
House No. H-37, Staff Colony, Mirpur AK 81302-1703271-1
64 Ziarat Gul Ziarat Gul Azeem Khan 526 - - 526 526 - - 526
Police Hospital Cantt, Police Lines. 17301-1355176-7
65 Zahoor Ahmed Zahoor Ahmed Sher Muhammed 655 - - 655 655 - - 655
Chagar Matti Peshawar 17301-5161490-7
NATIONAL BANK
66 Raja Muhammed Saleem Raja Muhammed Saleem Muhammad Ameen 510 - 4 514 510 - 4 514
Street No. 02, Muhalla Model Town Bhalwal, District 38401-7113926-3
Sargodha.
67 Muhammed Hanif Muhammed Hanif Muhammed Dawood Shaikh 586 - - 586 586 - - 586
Village Mari, P.O Mando Dero, Taluka Rohri, District 45502-2866977-3
Sukkur.
68 Ghulam Abbas Ghulam Abbas Allah Yar Awan 824 - - 824 824 - - 824
Village Ali Muhammed Mangrio, Talka Bhirya City, 45301-0588939-7
PAKISTAN
Lakha Road, District Nausharo Feroz.
Rs. In 000
mark-up
69 IE Khan Galina Sargeevna, 50-Pushkina Street, Khan Galina Sargeevna Khan Muhammad Zahid 20,990 - 2,672 23,662 8,219 2,672 - 10,891
Novapakrovka village, Bishkek AN 1919566
70 Aygun Adil Bahramova (grocery store on Agha Aygun Bahramova Adil - 2,304 232 2,536 - 2,304 232 2,536
Neymatulla Street, Baku) AZE 01935360
71 Mirzayeva Bahar Amirsultan Giz (car repair shop on Mirzayeva Bahar Amirsultan Giz - 556 40 596 - 556 40 596
Sharifzade Street, Yasamal district) AZE 09174034
72 Suleyev Karim. Kazakhstan Almaty sity, Zhandosov Suleev Karim Sysanovich Sysan 4,093 - - 4,093 2,871 - - 2,871
Street, 29G, apt. 17 018148989
73 LLP "LD" Kazakhstan Almaty, st. Choibalsana, d. No. Elham Guseinov Tagi 32,135 506 1,043 33,684 9,676 526 - 10,202
10b 031613611
74 LLP "Canvista" Almaty, Alatau district, mkr. Kurylyshy, Ushmugina Tumara Vasiliy 93,260 33,986 3,817 131,063 8,997 35,481 3,985 48,463
st. Arshaly, 58 G 017761969
75 LLP Troy Tech, Michurina street # 2, Temirtau city, Surucu Deniz Nazim Nazim 84,215 7,814 5,657 97,686 29,715 6,147 4,451 40,313
Karaganda region, Kazakhstan U 03891469
76 Turkebayeva Saule. Almaty region, Zhamyl district, s. Turkebayeva Saule Zhambyl 4,241 366 - 4,607 2,104 366 - 2,470
Uzynagash, st. Moldagulova, house 57 Zhambulova
007129435
1,371,647 408,409 490,975 2,271,031 102,669 48,052 515,722 666,443
375
ISLAMIC BANKING BUSINESS
The bank is operating 188 (2022: 188) Islamic banking branches and 150 (2022: 50) Islamic banking windows as at
December 31, 2023.
2023 2022
ASSETS
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
Cash and balances with treasury banks 10,248,305 6,096,555
Balances with other banks 43,076 13,766
Investments 1 51,544,718 53,920,119
Islamic financing and related assets - net 2 73,125,189 46,380,996
Fixed assets 70,902 87,489
Right of use assets (ROUA) 640,166 508,977
Other assets 4,488,184 2,294,054
Total Assets 140,160,540 109,301,956
LIABILITIES
Bills payable 477,959 1,210,608

Deposits and other accounts 3 113,801,806 93,591,714
Due to Head Office 12,960,028 4,005,715
Lease liability against right of use assets 811,291 721,152
Other liabilities 2,249,195 1,490,182
130,300,279 101,019,371
NET ASSETS 9,860,261 8,282,585
REPRESENTED BY
Islamic Banking Fund 6,731,000 5,561,000
Surplus / (Deficit) on revaluation of assets (400,216) 424,444
Unappropriated / unremitted profit 5 3,529,477 2,297,141
9,860,261 8,282,585
- -
The profit and loss account of the Bank's Islamic banking branches for the year ended December 31, 2023 is as follows:
2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
Profit / return earned 7 21,584,554 12,661,168

Profit / return expensed 8 (13,764,527) (7,600,260)
Net Profit / return 7,820,027 5,060,908
Other income
Fee and Commission Income 317,707 317,961
Foreign Exchange Income 61,765 155,195
Other Income 50 2,025
Total other income 379,522 475,181
Total Income 8,199,549 5,536,089
Other expenses
Operating expenses (3,496,250) (3,050,827)
Other charges (220) (374)
Total other expenses (3,496,470) (3,051,201)
Profit before provisions 4,703,079 2,484,888

Provisions and write offs - net (1,173,602) (187,747)
Profit before taxation 3,529,477 2,297,141
Taxation - -
Profit after taxation 3,529,477 2,297,141

2023 2022
Cost / Provision for Surplus / Carrying Cost / Provision for Surplus / Carrying
Amortised cost diminution (Deficit) Value Amortised cost diminution (Deficit) Value
1 Investments by segments:
--------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------
-Ijarah Sukuks 34,601,068 - (726,606) 33,874,462 33,648,948 - (339,589) 33,309,359
-Listed 7,800,000 - 287,176 8,087,176 8,200,000 - 303,132 8,503,132
-Unlisted 9,674,673 (130,807) 39,214 9,583,080 11,777,533 (130,807) 460,901 12,107,628
17,474,673 (130,807) 326,390 17,670,256 19,977,533 (130,807) 764,033 20,610,760
Total Investments 52,075,741 (130,807) (400,216) 51,544,718 53,626,481 (130,807) 424,444 53,920,119
2023 2022
Note
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
2 Islamic financing and related assets
Ijarah 2.1 13,749 38,208

Murabaha 2.2 3,291,932 1,713,901
Running Musharaka 30,500,000 -
Diminishing Musharaka 19,357,928 22,062,256
Istisna 705,500 -
Other Islamic Modes (Wakala tul Istismar) 8,500,000 8,500,000
Advance for Murabaha - 2,127,000
Advance for Diminishing Musharaka 113,086 100,894
Advance for Istisna 8,850,972 9,396,236
Inventories against Istisna 3,342,628 3,097,800
Gross Islamic financing and related assets 74,675,795 47,036,295
Less: provision against Islamic financings

- Specific (913,875) (654,980)
- General (636,731) (319)
(1,550,606) (655,299)
Islamic financing and related assets - net of provision 73,125,189 46,380,996
2.1 Ijarah
2023
Cost Depreciation
Book Value as
As at Charge/ As at at December
At January Additions / At January
December 31, Adjustment December 31, 31, 2023
01, 2023 (deletions) 01, 2023
2023 for the year 2023
------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------------------------------------------
Plant & Machinery 63,474 - 59,828 50,820 - 47,449 12,379

- (3,646) - - (3,371) -
Vehicles 168,680 - 6,000 143,126 1,065 4,630 1,370
- (162,680) - - (139,561) -
Total 232,154 - 65,828 193,946 1,065 52,079 13,749
(166,326) (142,932)

2022
Cost Accumulated Depreciation
Book Value as
As at Charge/
As at January Additions / As at January As at December at December
December 31, Adjustment for 31, 2022
01, 2022 (deletions) 01, 2022 31, 2022
2022 the year
----------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------------------------------------------------
Plant & Machinery 245,257 - 63,474 207,075 25,228 50,820 12,654

(181,783) (181,483)
Vehicles 209,727 - 168,680 152,834 28,725 143,126 25,554
(41,047) (38,433)
Total 454,984 - 232,154 359,909 53,953 193,946 38,208
(222,830) (219,916)
Future Ijarah payments receivable
2023 2022
Later than 1 Later than 1
Not later than Not later than 1
year & less Over five years Total year & less Over five years Total
1 year year
than 5 years than 5 years
----------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------------------------------------------------
Ijarah rental receivables 1,460 - - 1,460 36,438 9,802 - 46,240
2023 2022
Note
------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-----------------------------------
2.2 Murabaha
Murabaha financing 2.2.1 3,291,932 1,713,901
Advances for Murabaha - 2,127,000
3,291,932 3,840,901
2.2.1 Murabaha receivable - gross 2.2.2 3,409,195 1,868,953

Less: Deferred murabaha income 2.2.4 31,040 73,359
Less: Profit receivable shown in other assets 86,223 81,693
Murabaha financings 3,291,932 1,713,901
2.2.2 The movement in Murabaha financing during the year is as follows:

Opening balance 1,868,953 982,249
Sales during the year 11,165,657 12,721,419
Adjusted during the year 9,625,415 11,834,715

2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------
2.2.3 Murabaha sale price 11,165,657 12,721,419

Murabaha purchase price 10,750,858 12,234,017
414,799 487,402
2.2.4 Deferred murabaha income
Arising during the year 402,591 487,539
Less: Recognised during the year (444,910) (440,160)
3 Deposits
2023 2022
Total Total
Currency currencies Currency currencies
Note
-------------------------------------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------
Customers
Current deposits 23,153,680 185,921 23,339,601 20,491,314 167,871 20,659,185
Term deposits 16,261,024 - 16,261,024 15,137,438 - 15,137,438
96,136,237 185,921 96,322,158 76,883,137 167,871 77,051,008
Current deposits 1,879,123 - 1,879,123 354,951 - 354,951
Term deposits 528,613 - 528,613 2,070,766 - 2,070,766
17,479,648 - 17,479,648 16,540,706 - 16,540,706
3.2 113,615,885 185,921 113,801,806 93,423,843 167,871 93,591,714
2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)-------------------------------

- Individuals 54,111,171 45,084,725
- Government / Public Sector Entities 23,779,916 23,311,046
- Banking Companies 2,338,737 773,228
- Non-Banking Financial Institutions 15,140,911 15,767,478
- Private Sector 18,431,071 8,655,237
113,801,806 93,591,714
3.2 This includes deposits eligible to be covered under insurance arrangements amounting to Rs. 55,033 million
(2022: Rs. 47,134 million).

2023 2022
------------------------------------------------------------------------------------------------------------------------------------------(Rupees
Note in '000)-----------------------------------
4 Charity Fund
Opening Balance 203 64
Additions during the period

Received from customers on account of delayed payment 9,067 286
Profit on charity saving account 99 3
9,369 353
Payments / utilization during the period
Education 1,500 -
Health 1,500 -
Others - 150
4.1 3,000 150
Closing Balance 6,369 203
4.1 Charity paid during the year are as follows

Indus Hospital & Health Network 1,500 -
The Citizen Foundation 1,500 -
Prime Minister Flood Relief Fund - 150
Total 3,000 150
5 Islamic Banking Business Unappropriated/ Unremitted Profit

Opening Balance 2,297,141 1,502,668
Add: Islamic Banking profit for the year 3,529,477 2,297,141
Less: Transferred / Remitted to Head Office (2,297,141) (1,502,668)
6 Contingencies & commitment

Guarantees - -
Commitments - -
Other contingent liabilities - -
- -
7 Profit / Return Earned of Financing, Investments and Placement

Profit earned on:
Financing 12,351,676 5,712,166
Investments 9,231,359 6,730,485
Placements 1,519 1,235
Others (Bai Muajjal) - 217,282
21,584,554 12,661,168

2023 2022
---------------------------------------------------------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------
8 Profit on Deposits and other Dues Expensed
Deposits and other accounts 9,901,324 5,589,067

Amortisation of lease liability against - ROUA 79,419 79,103
Others (General Account) 3,783,784 1,932,090
13,764,527 7,600,260
9 Pool Management
NBP-AIBG has managed following pools for profit and loss distribution.
a) General depositor pool
The General pool consists of all other remunerative deposits. NBP Aitemaad (the Mudarib) accept deposits
on the basis of Mudaraba from depositors (Rabbulmaal). The net return on the pool is arrived at after
deduction of direct costs from the gross return earned on the pool. The entire net return after paying equity
share to Mudarib is considered as distributable profit of the pool.
b) Special depositor pools (Total 213 during the period and 47 as at Dec 31, 2023)
Special pool(s) are created where the customers desire to invest in high yield assets. These pool(s) rates
are higher than the general pool depending on the assets. In case of loss in special pool, the loss will be
borne by the special pool members. The net return on the pool is arrived at after deduction of direct costs
from the gross return earned on the pool. From the net return, and after allocation of share of profit to
commingled equity, profit is paid to the Mudarib in the ratio of the Mudarib’s equity in the pool to the total
pool. The balance represents the distributable profit.
c) Equity pool
Equity pools include AIBG's fund and current account deposits. The equity pool may have constructive
liquidation every month and risk associated with assets of pool includes operational, market, equity, return
and Shariah.
Key features and risk & reward characteristics
Deposits are accepted from customers on the basis of Qard (current accounts) and Mudarabah (Saving and
term deposits). No profit or loss is passed on to current account depositors.
For deposits accepted on Mudarabah basis from depositors (Rab ul Maal) the Bank acts as Manager (Mudarib)
and invests the funds in the Shariah Compliant modes of financings. Rab ul Maal share is distributed among
depositors according to weightages declared for a month before start of the period.
In case of loss in a pool during the profit calculation period, the loss is distributed among the depositors
(remunerative) according to their ratio of investment.
For all pools, the Mudarib’s share is deducted from the distributable profit to calculate the profit to be allocated
to depositors. The allocation of the profit to various deposit categories is determined by the amount invested in
that category relative to the total pool, as well as by the weightage assigned to the various deposit categories.

The assets, liabilities, equities, income and expenses are segregated for each of the pool. No pool investment is
intermingled with each other. The risk associated with each pool is thus equally distributed among the pools.
Avenues/sectors of economy/business where Modaraba based deposits have been deployed.
2023 2022
------------------------------------------------------------------------------------------------------------------------------------------------(Percentage)---------------------------------
Sector
Fertilizer 0.00% 1.48%
Textile 3.34% 4.25%
Fuel & energy 24.72% 34.07%
Leasing/Modarbas 0.02% 0.03%
Sugar 6.12% 7.80%
Cement 3.81% 6.10%
Gas 0.15% 0.35%
Financial 1.57% 1.94%
Federal Government 27.29% 32.95%
Real Estate 2.45% 3.10%
Agriculture 0.24% 0.30%
Commodity Operations 23.66% 0.00%
Others 6.62% 7.64%
Total 100% 100%
Parameters for profit allocation and charging expenses
Profit of the pools has been distributed between Mudarib and Rab-ul-Mall by using preagreed profit sharing
ratios. The share of Rab-ul-Mall's profit has been distributed among different customers using the various
weightages assigned to the different categories of the pool.
No provision against any non performing asset of the pool is passed on to the pool except on the actual loss /
write off of such non performing asset. Administrative expense are borne by mudarib and not charged to
Mudaraba pool.
31-Dec-23
Rupees in '000
Mudarib Share
Gross Distributable Income 17,033,942
Mudarib Share in percentage 31%
Hiba from Mudarib Share

Hiba from bank's share to depositors 1,779,501
Hiba from bank's share to depositors in percentage 34%
Profit rates
During the year ended Dec 31, 2023 the average profit rate earned by NBP Islamic Banking Group is 19.03%
and the profit distributed to the depositors is 14.31%.

PACRA
A1+ Short-Term
AAA Long-Term
VIS
A-1+ Short-Term
AAA Long-Term

th
NOTICE FOR 75 ANNUAL GENERAL MEETING
Notice is hereby given that 75th Annual General Meeting (“AGM”) of National Bank of Pakistan (the “Bank”) will be held on
Thursday, March 28, 2024 at 04:00 P.M. (PKT) at Mövenpick Hotel, Club Road, Karachi and through electronic means.
The following business will be transacted in the Meeting:
Ordinary Business:
1. To confirm the minutes of the Extraordinary General Meeting (EOGM) of Shareholders held on July 25, 2023,
physically and through electronic means.
2. To receive, consider and adopt the annual audited unconsolidated and consolidated financial statements of
National Bank of Pakistan and its subsidiaries for the year ended December 31, 2023, together with the
Directors’ Report, Auditors’ Report and Chairman’s Review Report thereon.
3. To appoint auditors for the year ending December 31, 2024, and fix their remuneration. The Board of Directors
has recommended the re-appointment of Messrs. PwC A.F. Ferguson & Co., Chartered Accountants at a fee of
PKR 35.825 million including some statutory certification and Messrs. BDO Ebrahim & Co., Chartered
Accountants at a fee of PKR 30.440 million including some statutory certification, to be auditors of the Bank for
the year ending December 31, 2024
Special Business:
4. To approve the renewal with amendments in the Board’s Remuneration Policy.
5. To approve transmission of Annual Audited Accounts of the Bank to the members via QR enabled code and
web link.
6. To authorize Mr. Rehmat Ali Hasnie, President / CEO, NBP, to sign the necessary legal/regulatory documents
pertaining to the closure of NBP-Bishkek Branch, Kyrgyz Republic, NBP-Baku Branch, Azerbaijan and
Subsidiary bank - Almaty on behalf of the shareholders of National Bank of Pakistan.
7. To transact any other business with permission of the Chairman.
Karachi By Order of the Board

Dated: March 07, 2024 Sd/-
S.M. Ali Zamin
Secretary (Board)

NOTES:
The Share Transfer Books of the Bank shall remain closed from March 22, 2024 to March 28, 2024 (both days inclusive).
Transfers received at Messrs. CDC Share Registrar Services Limited, CDC House 99-B, Block “B”, SMCHS, Main
Shahrah-e-Faisal, Karachi – 74400, the Bank’s Share Registrar and Transfer Agent, at the close of business on March 21,
2024 will be treated in time to attend the meeting.
PARTICIPATION IN ANNUAL GENERAL MEETING:
The Annual General Meeting is being conducted as per guidelines circulated by SECP. The following arrangements have
been made by the Bank to facilitate the maximum participation of shareholders in the AGM through video link facility,
either in-person or through appointed proxies:
a) Attending Meeting through Electronic Means
In order to attend the AGM through electronic facility, the members are requested to get themselves registered with
CDC Share Registrar Services Limited upto March 27, 2024 till 05:00 P.M. at cdcsr@cdcsrsl.com or WhatsApp No.
0321-8200864 and they are requested to provide the information as per the below format:
S. # Company Folio Number / Name of the CNIC # Cell # E- mail

Name CDC Account # Shareholder Address
NBP
The details of electronic facility will be sent to the members at the email address provided by them. The login
facility will be opened at 3:30 P.M. on March 28, 2024 enabling the participants to join the proceedings after
identification and verification process before joining the meeting, which will start at 4:00 P.M. (sharp).
b) Attending Meeting Physically
Arrangements for physical gathering of shareholders have been made at Mövenpick Hotel, Club Road, Karachi.
c) Attending Meeting through Proxies
i) All members, entitled to attend and vote at the Annual General Meeting, are entitled to appoint another
member in writing as their proxy to attend and vote on their behalf. A legal entity, being a member, may
appoint any person, regardless of whether they are a member or not, as proxy.
ii) The proxy instrument must be complete in all respects and in order to be effective should be deposited at
Office of the Registrar or Office of the Secretary Board, 2nd floor, NBP Head Office, I.I. Chundrigar Road,
Karachi not later than 48 hours before the time of holding the meeting.
iii) For attending the meeting through electronic means (Zoom), proxy form shall be submitted along with proxy
holders’ email address and mobile number.
iv) If any member appoints more than one proxy for any one meeting and more than one instrument of the
proxy are deposited with the Registrar/Bank, all such instruments of proxy shall be rendered invalid.
d) Guidelines for Appointing Proxies:
i) In case of individuals, the account holder or sub-account holder and/or the person whose securities are in
group account and their registration details are uploaded as per the regulations shall submit the proxy form
as per the requirements mentioned below:
a) The proxy form shall be witnessed by two persons whose names, addresses and CNIC numbers
must be mentioned on the form.

b) Attested copy of CNIC or the Passport of the beneficial owner(s) and of the proxy shall be furnished
with the proxy form.
ii) In case of a legal entity, the original or duly authenticated Board of Directors’ resolution or power of attorney
with specimen signature of the nominee shall be produced (unless it has been provided earlier) along with
proxy form to Messrs. CDC Share Registrar Services Limited or to the Office of Secretary Board, 2nd floor,
NBP Head Office, I.I Chundrigar Road, Karachi.
(Proxy Form is available on NBP website www.nbp.com.pk)
Ÿ Members are requested to immediately notify any change in their address to the Bank’s
Registrar/Shares Transfer Agent i.e., Messrs. CDC Share Registrar Services Limited.
PROCEDURE FOR VOTING FOR SPECIAL AGENDA ITEMS
It is hereby notified that according to the Companies (Postal Ballot) Regulations, 2018 and its amendments notified vide
SRO 2192(I)/2022 dated December 05, 2022 members will be allowed to exercise their right to vote for the special
business in the Annual General Meeting (AGM), in accordance with the conditions mentioned in the aforesaid regulation,
the Bank shall provide its members with the following options for voting:
E-Voting Procedure
a) The Bank’s Share Registrar in accordance with the Companies (Postal Ballot) Regulations, 2018 will send
complete information to the members, including but not limited to, web address, login detail, password, date
of casting e-vote and other necessary details through email; and security code through SMS on their
registered email and mobile number available in the members’ register.
b) Identity of the member intending to cast vote through e-voting shall be authenticated through electronic
signature or authentication for login.
c) Individual interested to cast his/her vote through e-voting, availability of his/her CNIC, mobile number and
email address and in case of a corporate entity NTN in company’s record is mandatory.
d) It is mandatory for all CDS account holders to update their records with their participants and physical
shareholders with Bank’s Share Registrar i.e., CDCSRSL before book closure date.
e) Voting lines for Special Agenda items will be opened for the Shareholders from March 25, 2024 at 09:00
a.m. till March 27, 2024 at 5:00 p.m.
Postal Ballot
The Shareholders shall ensure duly-filled and signed ballot paper along with copy of CNIC, in case of individual
and in case of body corporate, acceptable identification documents i.e., the Original or duly authenticated Board of
Directors’ resolution / power of attorney along with valid copies of CNIC of authorized signatories etc. should reach
through post to the Chairman, National Bank of Pakistan, Head Office Building, 2nd floor, I. I. Chundrigar Road,
Karachi or by email at agm@nbp.com.pk by March 27, 2024 till 5:00 p.m. i.e., before the day of poll.
Vote Casting In-Person or Through Proxy
Polling booth will be established at the place of physical gathering of the AGM for voting.

SPECIAL NOTES TO THE SHAREHOLDERS
1. CONVERSION OF PHYSICAL SHARES INTO BOOK-ENTRY FORM:
The SECP through its letter No. CSD/ED/Misc./2016-639-640 dated March 26, 2021 has advised listed companies
to adhere to the provision of Section-72 of the Companies Act, 2017 (the “Act”) requiring all the existing companies
to replace shares issued by them in physical form with shares into Book-Entry form in a manner as may be
specified and from the date notified by the SECP but not exceeding four (04) years from the date of promulgation of
the Act. Considering the aforesaid directive, NBP has also published a request on October 28, 2021 to ensure
compliance with the Act and advised to open Investor Account directly with the Central Depository Company of
Pakistan Limited (“CDC”) or CDC-Sub-Account with any TREC Holder registered with Pakistan Stock Exchange
Limited (PSX) to place their physical shares into Book-Entry form. It will not only ensure the compliance of relevant
rules and regulations but will also speed up the process of disbursement of entitlement to the respective
shareholders.
2. AVAILABILITY OF AUDITED FINANCIAL STATEMENTS ON BANK'S WEBSITE:
The Bank has placed the Audited Annual Financial Statements for the year ended December 31, 2023 along with
Auditors’ Report, Directors’ Report and Chairman’s Review Report thereon on its website: www.nbp.com.pk
STATEMENT OF MATERIAL FACTS
This Statement sets out material facts concerning the special business given in agenda items No. 4, 5 & 6 of the Notice,
to be transacted in the 75th AGM of NBP’s shareholders to be held on March 28, 2024.
Agenda Item No. 4:
To approve the renewal with amendments in the Board Remuneration Policy
The Board Remuneration Policy was initially approved by shareholders in the Extraordinary General Meeting on July 27,
2020. Subsequent amendments were approved in the 74th Annual General Meeting of NBP held on March 30, 2023. The
Board of Directors has reviewed and updated the Remuneration Policy to align with the State Bank of Pakistan’s
Corporate Governance Regulatory Framework (“CGRF”). The Policy adjustments aim to enhance alignment with industry
standards and best practices. Despite the update, there is no major change in the remuneration structure for the directors.
SUMMARY OF KEY CHANGES IN THE BOARD REMUNERATION POLICY
S. No. Existing New Rationale

1 Clauses 6.1, 7, 8.1 & 9 Clauses 6.1, 7, 8.1 & 9
Reference is of 71st AGM held on May th

Change with reference to the 74 AGM Updation of relevant clause
12, 2020 and EOGM held on May 15, held on March 30, 2023. based on shareholders'
2017. approval.
Clause 8.2 Clause 8.2
2 Silent on insurance coverage. Travel and health insurance coverage Insurance coverage is
during international travel for official required for life & health of
purpose and/or attending Board/ Board Directors during international
Committee meetings. travel.
3 Clause 11 Clause 11
Reference to SBP’s BPRD Circular Reference to SBP’s BPRD Circular No. CGRF has superseded the
No. 03/2019. 05/2021 (CGRF). previous circular.
Approval of Shareholders on pre or Approval of shareholders on pre-fact Due to SBP’s CGRF Clause
post-fact basis. basis only. 2(i) of G-14

The Board has recommended the following resolutions to the Shareholders for approval:
"RESOLVED THAT the Board Remuneration Policy is hereby renewed/amended as per the summary of key changes in
the Board Remuneration Policy presented and that the updated Policy, be and is hereby adopted."
Disclosure: In terms of Section 134(3) of The Companies Act, 2017, all Directors and Chairman, except the
President, are interested in this special resolution.
Agenda Item No. 5:
To approve transmission of Annual Audited Accounts of the Bank to the members via QR enabled code and web
link
The Securities and Exchange Commission of Pakistan, in its Notification S.R.O. 389 (I)/2023 dated March 21, 2023,
recognizing technological advancements and the obsolescence of older technology, has permitted listed companies to
circulate the annual audited financial statements to their members using QR enabled code and weblink, instead of the
traditional circulation via CD/DVD/USB. This is subject to the approval of shareholders obtained during a general meeting.
The Bank will send the Notice of Annual General Meeting to members following the Act and will adhere to other
instructions of SECP outlined in the aforementioned notification, including:
(a) to transmit via email annual audited financial statements to shareholders who have provided to the Bank their email
addresses; and
(b) to provide within one week, free of cost hard copy of annual audited financial statements with relevant documents to
shareholder(s), in case the Bank receives request of a shareholder on the standard request form available on the
Bank’s website.
The shareholders are requested to pass the following resolutions:
“RESOLVED THAT the Bank shall circulate annual audited financial statements to its members through QR enabled
code and weblink and shall discontinue circulation of annual financial statements through CD/DVD/USB, be and is hereby
approved”.
“FURTHER RESOLVED THAT the Bank shall ensure at all times the requirements given in Securities and Exchange
Commission Notification S.R.O. 389 (I)/2023 dated March 21, 2023 and all other applicable laws in connection with the
transmission of Notice of Annual General Meeting and circulation of Annual Report to the members of the Bank are duly
complied with, be and is hereby approved.”
Disclosure: In terms of Section 134(3) of The Companies Act, 2017, no Director/Chairman/President is directly or
indirectly interested in the special resolutions.
Agenda Item No. 6:
To authorize Mr. Rehmat Ali Hasnie, President / CEO, NBP, to sign the necessary legal/regulatory documents
pertaining to the closure of NBP Bishkek Branch, Kyrgyz Republic NBP Baku Branch, Azerbaijan and subsidiary
bank - Almaty on behalf of the shareholders of National Bank of Pakistan
NBP shareholders in their 72nd Meeting held on March 29, 2021 had accorded their approval for closure of operations at
all Central Asian locations and had also empowered Mr. Arif Usmani, the then President / CEO NBP to sign all necessary
legal / regulatory documents on behalf of NBP Shareholders. Mr. Arif Usmani after completing his tenure has left the
Bank. In order to comply with the local regulatory requirements, we, request the Shareholders of the National Bank of
Pakistan, to delegate the powers to Mr. Rehmat Ali Hasnie, incumbent President / CEO, to sign all documents including
the decisions on behalf of shareholders required for closure of the operations at the Kyrgyz Republic, Azerbaijan and
Kazakhstan, as previously delegated to the then President Mr. Arif Usmani. The Board has recommended the following
resolution to the Shareholders for approval:
"RESOLVED THAT Mr. Rehmat Ali Hasnie, President / CEO NBP, Head Office, Karachi be and is hereby authorized to
sign all the necessary legal/regulatory documents on behalf of Shareholders of National Bank of Pakistan in order to
complete the necessary formalities for closure of operations in overseas branches/subsidiaries, be and is hereby
approved.”
Disclosure: In terms of Section 134(3) of The Companies Act, 2017, no Director/Chairman, except the President,
is directly or indirectly interested in the special resolution.


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I Integrity

is the cornerstone of everything we do

4 NATIONAL BANK PAKISTAN

Financial Performance Overview 106

6 NATIONAL BANK PAKISTAN

AGM & SUPPLEMENTARY

ANNUAL REPORT 2023 7

Our Purpose Our Integrated Approach to Value Creation

Enabling Delievering on Operating Context &

Mission Executive Management Opportunities Financial and Non-Financial Targets

Strategy and Objective The Medium

Organisational Purpose Material Matters

Targeted Readers Suggestions and Queries

• The Banking Companies Ordinance, 1962

• Board Audit Committee

8 NATIONAL BANK PAKISTAN

Integrated Outcomes Reporting

Non-Financial Information Internal Validation Management Sign-Off

2023 Annual Report

Other Information Governance and Culture

Narrative Report and Corporate Governance

• Listing Requirements of the Pakistan Stock Exchange

• PwC A. F. Ferguson & Co. Chartered Accountants

ANNUAL REPORT 2023 9

7 Decades of Diversified Coverage

12 NATIONAL BANK PAKISTAN

NATIONAL BANK OF PAKISTAN

NBP Fund Taurus National Bank

54% 58.3% 100%

NBP Exchange CJSC Subsidiary Bank of

ANNUAL REPORT 2023 13

Legal Form Auditors of 2023

Registrar and Share

UAN: 111-111- 500

14 NATIONAL BANK PAKISTAN

EXTERNAL AUDITORS SHAREHOLDERS REGULATORS

ANNUAL REPORT 2023

Determine and review the Review and recommend

THE LEADERSHIP TEAM

BUSINESS, CONTROL & SUPPORT GROUPS

Business Control Support

Total Income Pre-Prov. Profit Total Assets Investments

36.4% 53.6% 26.9% 26.6%

Profit Before Tax Profit After Tax Advances Deposits

61.4% 70.5% 13.4% 37.8%

Total CET-1 Net Stable Liquidity Leverage NPL

25.47% 19.16% 259% 176% 3.12% 92.19%

A1+ Short-Term A-1+ Short-Term

16 NATIONAL BANK PAKISTAN

Corporate Unparalleled Nationwide Coverage

Economic Value Generated

>95% PKR 1,071 Bn

Agriculture Loan Community

Islamic Banking Assets

PKR 49.4 Bn PKR 140.2 Bn

ANNUAL REPORT 2023 17

The 1960S.. The 1970S... The 1980S... New

» The Bank increased its

18 NATIONAL BANK PAKISTAN

2010 2020 2021 2022 2023

The 1990S... 2010 Till Today...

» The bank deployed Core Banking Application in 2015.

» In 2013, with the growing popularity of Islamic Banking, NBP